Risk-Taking Tournaments: Theory and Experimental Evidence
Author(s) / Creator(s)
Nieken, Petra
Sliwka, Dirk
Abstract / Description
We study risk-taking behavior in a simple two person tournament in a theoretical model as well as a laboratory experiment. First, a model is analyzed in which two agents simultaneously decide between a risky and a safe strategy and we allow for all possible degrees of correlation between the outcomes of the risky strategies. We show that risk-taking behavior crucially depends on this correlation as well as on the size of a potential lead of one of the contestants. We find that the experimental subjects acted mostly quite well in line with the derived theoretical predictions.
Keyword(s)
Wettkampf Risiko Experiment Konkurrenz Risikobereitschaft tournaments competition risk-taking experimentPersistent Identifier
Date of first publication
2008
Is part of series
Forschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;3400
Citation
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dp3400.pdfAdobe PDF - 337.99KBMD5: d4b934b1699536764c7b0bb89b4c7ae6
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There are no other versions of this object.
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Author(s) / Creator(s)Nieken, Petra
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Author(s) / Creator(s)Sliwka, Dirk
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PsychArchives acquisition timestamp2022-11-17T11:03:19Z
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Made available on2008-06-02
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Made available on2015-12-01T10:32:07Z
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Made available on2022-11-17T11:03:19Z
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Date of first publication2008
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Abstract / DescriptionWe study risk-taking behavior in a simple two person tournament in a theoretical model as well as a laboratory experiment. First, a model is analyzed in which two agents simultaneously decide between a risky and a safe strategy and we allow for all possible degrees of correlation between the outcomes of the risky strategies. We show that risk-taking behavior crucially depends on this correlation as well as on the size of a potential lead of one of the contestants. We find that the experimental subjects acted mostly quite well in line with the derived theoretical predictions.en
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Persistent Identifierhttps://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:bsz:291-psydok-16042
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Persistent Identifierhttps://hdl.handle.net/20.500.11780/1067
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Persistent Identifierhttps://doi.org/10.23668/psycharchives.8989
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Language of contenteng
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Is part ofIZA Discussion Paper Series No. 3400
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Is part of seriesForschungsinstitut zur Zukunft der Arbeit/ Institute for the Study of Labor: IZA Discussion Paper Series;3400
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Keyword(s)Wettkampfde
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Keyword(s)Risikode
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Keyword(s)Experimentde
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Keyword(s)Konkurrenzde
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Keyword(s)Risikobereitschaftde
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Keyword(s)tournamentsen
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Keyword(s)competitionen
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Keyword(s)risk-takingen
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Keyword(s)experimenten
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Dewey Decimal Classification number(s)150
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TitleRisk-Taking Tournaments: Theory and Experimental Evidenceen
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DRO typereport
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Visible tag(s)PsyDok