Risk-taking tournaments - Theory and experimental evidence
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.
Year of publication: |
2010
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Authors: | Nieken, Petra ; Sliwka, Dirk |
Published in: |
Journal of Economic Psychology. - Elsevier, ISSN 0167-4870. - Vol. 31.2010, 3, p. 254-268
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Publisher: |
Elsevier |
Subject: | Tournaments Competition Risk-taking Experiment |
Saved in:
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