Entrepreneurs as Sophisticated Iconoclasts: Rational Rule‐Breaking in an Experimental Game

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.