We propose experiments in virtual reality (VR) as a new approach to examining behavior in an economic context, e.g., heterogeneity in dynamic tournaments. We simulate a realistic working situation in a highly immersive environment. Implementing a tournament in VR, we are able to mitigate the...

Using a promotion signaling model in which wages are realistically shaped by market forces, we analyze how male overconfidence combined with competitive workplace incentives affects gender equality in the labor market. Our main result is that overconfident workers exert more effort to be...

Gender differences in overconfidence are well documented in the empirical literature, but their impact on labor market outcomes remains underexplored. We provide new insights into how behavioral biases interact with career dynamics by presenting a theoretical analysis of how men's relatively...

In many situations, agents take risks by choosing an action that increases their performance immediately, but that potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition that the agents face. We study a tournament model and...

In many situations, agents take risks by choosing an action that increases their performance immediately, but that potentially leads to a large loss. The current paper studies how such risk-taking behavior depends on the level of competition that the agents face. We study a tournament model and...

Gender differences in overconfidence have been extensively documented in the empirical literature, but the implications for labor market outcomes are not well understood. In this paper, we analyze how men's relatively higher overconfidence, combined with competitive job incentives, affects...