|Mueller-Langer, Frank; Andreoli-Versbach, Patrick (17. June 2013): Leading-effect vs. Risk-taking in Dynamic Tournaments: Evidence from a Real-life Randomized Experiment. Discussion Papers in Economics 2013-6|
Two 'order effects' may emerge in dynamic tournaments with information feedback. First, participants adjust effort across stages, which could advantage the leading participant who faces a larger 'effective prize' after an initial victory (leading-effect). Second, participants lagging behind may increase risk at the final stage as they have 'nothing to lose' (risk-taking). We use a randomized natural experiment in professional two-game soccer tournaments where the treatment (order of a stage-specific advantage) and team characteristics, e.g. ability, are independent. We develop an identification strategy to test for leading-effects controlling for risk-taking. We find no evidence of leading-effects and negligible risk-taking effects.
|Item Type:||Paper (Discussion Paper)|
|Keywords:||Tournaments, order effects, leading-effect, risk-taking, randomized natural experiments|
|Faculties:||Economics > Munich Discussion Papers in Economics|
|Subjects:||300 Social sciences > 330 Economics|
|JEL Classification:||C93, C21, D01, L83|
|Deposited On:||26. Jun 2013 09:54|
|Last Modified:||30. Apr 2016 04:51|
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