Risk Taking in Asymmetric Tournaments

In an asymmetric tournament model with endogenous risk choice by the agents it is shown that equilibrium efforts decrease (increase) with risk if abilities are sufficiently similar (different). Risk also affects winning probabilities. The interaction of both effects is analyzed.

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Year of publication:	2001-11
Authors:	Kräkel, Matthias ; Sliwka, Dirk
Institutions:	University of Bonn, Germany
Subject:	effort effect \| likelihood effect \| risk taking \| tournament

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Extent:	application/pdf
Series:	Bonn Econ Discussion Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	1 pages long
Classification:	D23 - Organizational Behavior; Transaction Costs; Property Rights ; J3 - Wages, Compensation, and Labor Costs ; M12 - Personnel Management
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10004968353