Individuals faced by a tournament can often not only choose their effort level, but also the risk level of their strategy. There are some theoretical contributions on risk-taking in tournaments, which mainly point out disadvantages with respect to exerted effort. Empirical evidence is rare. This...

We consider a contest between a small and a large team. On the one hand, the large team has the advantage of more people exerting effort (quantity effect). On the other hand, the large team suffers from more free riding (free-riding effect). The results show that - depending on the convexity of...