47shaping and choosing goals worth pursuing in the face of complex interacting uncertainties. Additionally, it suggests that the question, “What are we willing to live with if we get it wrong?” has to become a larger part of the public discourse than it is today.

Keywords Effectuation · Market design · Uncertainty

1 Introduction

We know from over two decades of research that entrepreneurial expertise consists in heuristics of nonpredictive control, grouped under the rubric of effectuation (Sarasvathy, 2009). The principles of effectuation allow entrepreneurs to act under multiple uncertainties. Moreover, the effectual process logically implies a high probability of innovation, while keeping losses within the control of entrepreneurs and their stakeholders. This vitiates the taken-for-granted relationship between high risk and high reward. Conventional wisdom about entrepreneurs being risk-takers is not accurate. In fact, the familiar relationship between risk and reward speaks to investor behavior

S. D. Sarasvathy (*) Darden School of Business, University of Virginia, Charlottesville, VA, USA Indian Institute of Management, Bangalore, Bengaluru, India e-mail: saras@virginia.edu