Work

Psychological Pressure in Competitive Environments: Evidence from a Randomized Natural Experiment

Year: 2010

Type: article

Abstract: Emotions can have important effects on performance and socioeconomic outcomes. We study a natural experiment where two teams of professionals compete in a tournament taking turns in a sequence. As the sequential order is determined by the random outcome of a coin flip, the treatment and control groups are determined via explicit randomization. Hence, absent any psychological effects, both teams should have the same probability of winning. Yet, we find a systematic first-mover advantage. Further, professionals are self-aware of their own psychological effects and, when given the chance, they rationally react by systematically taking advantage of these effects. (JEL C93, D03, D82, L83)

Source: American Economic Review

DOI: 10.1257/aer.100.5.2548

Authors: Jose Apesteguia, Ignacio Palacios-Huerta

Institutions: Universitat Pompeu Fabra, London School of Economics and Political Science

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

Funders: Fundación Ramón Areces, Generalitat de Catalunya, Ministerio de Ciencia y Tecnología

OpenAlex ID: W3121916246