Abstract
Under conditions of Knightian uncertainty, the strategies that entrepreneurs can take are neither obvious nor readily known, and entrepreneurs will have to form different expectations and combine different strategies as they bring their ventures to fruition. This paper proposes a unified portrait of these strategies, with a typology of uncertainty reduction or uncertainty avoidance regarding how to own and combine heterogeneous assets, contract and organize human capital, and finance ventures under uncertain conditions. In this unified perspective, creation or discovery settings are better seen as outcomes of how entrepreneurs imagine the context where they act, and different characteristics of these contexts shape, influence, and incentivize the strategies that entrepreneurs pursue. Avoidance strategies are more prevalent for creation settings, while reduction strategies are center stage for discovery settings. Finally, as entrepreneurs revise their judgments in a recursive process, they shift from avoidance to reduction strategies (and vice-versa).