Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/170776
Authors: 
Filippin, Antonio
Gioia, Francesca
Year of Publication: 
2017
Series/Report no.: 
IZA Discussion Papers 10792
Abstract: 
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 in a significant manner. When conditioning on the outcome, we find that males become significantly more risk averse after losing the tournament than after randomly earning the same low payoff. In contrast, males do not become more risk-seeking after winning the tournament, while females' average risk-taking behaviour is unaffected by tournament participation and outcomes. We interpret our findings in terms of males' reaction to negative outcomes driven by intrinsic motives, such as emotions or a shift in the locus of control from internal to external.
Subjects: 
competition
risk attitudes
gender
JEL: 
C81
C91
D81
Document Type: 
Working Paper

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