%0 Report
        %A Nieken, Petra
%A Sliwka, Dirk
        %T Risk-Taking Tournaments: Theory and Experimental Evidence
        %D 2008
        %8 2008 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 3400
        %U https://www.iza.org/publications/dp3400
        %X 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.
        %K risk-taking
%K competition
%K tournaments
%K experiment