This paper studies if competition affects subsequent risk-taking behaviour by means of a laboratory experiment that manipulates the degree of competitiveness of the environment under equivalent monetary incentives. We find that competition increases risk aversion, especially for males, but not...

Building upon some education studies finding that cooperative behaviour in class yields better achievements among students, this paper presents a simple model showing that free riding incentives lead to an insufficient degree of cooperation between schoolmates, which in turn decreases the...