TY  - RPRT
        AU  - Nieken, Petra
AU  - Sliwka, Dirk
        TI  - Risk-Taking Tournaments: Theory and Experimental Evidence
        PY  - 2008/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 3400
        UR  - https://www.iza.org/index.php/publications/dp3400
        AB  - 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.
        KW  - risk-taking
KW  - competition
KW  - tournaments
KW  - experiment
        ER  -