ABSTRACT
Having figure 7.1 in mind when building a model on entrepreneurial behavior, we start with a set of actors. They neither have complete information/foresight nor perfect (cognitive) capabilities, i.e. we have bounded rational1 decision-making agents. They cannot make optimal decisions. Decisions are dependent on their knowledge and the information they have or receive, respectively, from their social, political and economic environment.2 The agents’ perception of their environment is thereby contingent to their limited information processing capacity and their limited attentiveness. They have to be selective in their information collection process subject to bounded cognitive capabilities, which, finally results in trial-and-error behavior.3 Thus, the individual agent becomes a “creative observer” of his socio-economic environment. The latter influences the actor’s perception and knowledge of economic “reality” as well as the actor himself creates economic reality within a social cognitive process that directs economic behavior.
