| Abstract: | We analyzed the theoretical relationship between rule‐breaking by entrepreneurs and realized advantage. We tested the tenets of that relationship using an experiment where subjects, including entrepreneurs, compete in a business strategy game where rule‐breaking is possible (but does not directly correlate with benefits). We found that entrepreneurs break the rules more often and realize greater benefits because they break rules in a smarter way. The ability to be sophisticated in rule‐breaking behavior stems from breaking the rules earlier and responding more aggressively to positive feedback. Such actions can create new net value in the economy—reinforcing the idea of entrepreneurship as a social good. |
