I introduce and test for preference for simplicity in choice under risk. I characterize the theory axiomatically, and derive its properties and unique predictions relative to canonical models. By designing and running theoretically motivated experiments, I document that people value simplicity in ways not fully captured by existing models that study risk premia in financial markets. Participant…
Includes bibliographies and index
New ventures (companies eight years or younger) face an important choice in attempting to achieve growth: Should they follow ?strategic simplicity? by relying on a few similar competitive actions, or emphasize ?strategic variety? by implementing multiple different competitive actions? Data from 140 new ventures in Spain suggest that new ventures benefit from pursuing strategic variety, especial…