BURIDAN ASS, RISK, UNCERTAINTY, AND SELF-COMPETITION - A THEORY OF ENTREPRENEURSHIP

The paper defines entrepreneurship as about 'self-competition', the qu est to test self-ability: Can a future self achieve greater goals than what has been so far achieved? Self-competition involves the developm ent of ability and, hence, ex post assessment of ability is uncertain. Such uncertainty occasions either immobilizing anxiety (Buridan's ass ) or entrepreneurial action. No such uncertainty surrounds the assessm ent of risk probability characterizing events such as floods and stock market crashes. An observable prediction of the proposed uncertainty/ risk dichotomy is that insurance, which concerns risk, cannot crowd ou t religion and other belief systems which appeal to uncertainty.