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
Authors:	Kräkel, Matthias ; Sliwka, Dirk
Publisher:	Bonn : University of Bonn, Bonn Graduate School of Economics (BGSE)
Subject:	effort effect \| likelihood effect \| risk taking \| tournament

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Series:	Bonn Econ Discussion Papers ; 33/2001
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	869634518 [GVK] hdl:10419/78434 [Handle] RePEc:zbw:bonedp:332001 [RePEc]
Classification:	D23 - Organizational Behavior; Transaction Costs; Property Rights ; J3 - Wages, Compensation, and Labor Costs ; M12 - Personnel Management
Source:	EconStor

Persistent link: https://www.econbiz.de/10010317691