Event

Gambling in Risk-Taking Contests: Experimental Evidence by Matthew Embrey

Microeconomics Research Seminar Series, Autumn Term 2021

  • Mon 1 Nov 21

    15:00 - 16:30

  • Colchester Campus

  • Event speaker

    Dr Matthew Embrey

  • Event type

    Lectures, talks and seminars
    Microeconomics Research Seminar Series

  • Event organiser

    Economics, Department of

Join Dr Matthew Embrey as they present their research on Gambling in Risk-Taking Contests: Experimental Evidence

Gambling in Risk-Taking Contests: Experimental Evidence by Matthew Embrey

Join us for the another event in the Microeconomics Research Seminar Series, Autumn Term 2021.

Dr Matthew Embrey from the Department of Economics, Sussex University will present their research on Gambling in Risk-Taking Contests: Experimental Evidence. 

Abstract 

This paper experimentally investigates excessive risk taking in contest schemes by implementing a stopping task based on Seel and Strack (2013). In this stylized setting, managers with contest payoffs have an incentive to delay halting projects with a negative expectation, with the induced inefficiency being highest for a mod- erately negative drift. The experiment systematically varies the negative drift (between-subjects) and the payoff incentives (within-subject). We find evidence for excessive risk taking in all our treatment conditions, with the non-monotonicity at least as problematic as predicted. Contrary to the theoretical predictions, this aggregate pattern of behaviour is seen even without contest incentives. Further analysis suggests that many subjects display behaviour consistent with some intrinsic motivation for taking risk. This intrinsic motive and the strategic motive for excessive risk taking reinforce the non-monotonicity. The experiment uncovers a behavioural nuance where contest incentives crowd out an intrinsic inclination to gamble. 

This seminar will be held at 3pm at the Colchester Campus in 5S.4.19 , as well as on Zoom. This event is open to all levels of study and is also open to the public. To register your place and gain access to the webinar, please contact the seminar organisers.

This event is part of the Microeconomics Research Seminar Series.

 

A lady handling money
Contact the seminar organisers
Dr Ahrash Dianat Department of Economics
University of Essex
Dr Aditya Kuvalekar Department of Economics
University of Essex

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