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Author Grund, Christian ♦ Höcker, Jan ♦ Zimmermann, Stefan
Source EconStor
Content type Text
Publisher Institute for the Study of Labor (IZA)
File Format PDF
Language English
Subject Domain (in DDC) Social sciences ♦ Economics
Subject Keyword Basketball ♦ NBA ♦ risk taking ♦ tournaments ♦ Risikopräferenz ♦ Extensives Spiel ♦ Ballsport ♦ Professioneller Sport ♦ Wirtschaftliche Effizienz ♦ USA ♦ Personnel Economics
Abstract We empirically explore the relevance of risk taking behavior in tournaments. We make use of data from the NBA season 2007/2008 and measure risk taking by the fraction of three-point shots. Current heterogeneity of teams is taken into account by intermediate results. It turns out that indeed teams who are behind increase the risk in terms of more three-point attempts. We additionally analyze the consequences of this change in behavior. Enhanced risk taking is inefficient for the vast majority of cases and only beneficial in terms of a higher winning probability if a team is behind with a rather large amount of points. We discuss possible explanations for these decision errors.
Part of series IZA Discussion Papers x4812
Learning Resource Type Article
Publisher Date 2010-01-01
Publisher Place Bonn
Rights Holder