By: |
SeEun Jung (Department of Economics, Inha University);
Radu Vranceanu (ESSEC Business School) |
Abstract: |
In a classical experiment, Niederle and Vesterlund (2007) used the dichotomous
choice of individuals between a piece rate and a tournament payment scheme as
an indication of their propensity to compete. This paper reports results from
a two person interaction of a similar type to analyze whether the preference
for competition is dependent on the gender of the partner. It introduces a
Becker-DeGroot-Marschak mechanism to elicit individual willingness to compete
(WTC), defined as the amount of money that makes an individual indifferent
between the two compensation schemes. Even when controlling for risk aversion,
past performance and over-confidence, the male WTC is e3.30 larger than the
female WTC. The WTC instrument allows for a more precise analysis of the
impact of the partner's gender on the taste for competition. WTC data confirm
that in this experiment the partner's gender has not a significant impact on
the propensity to compete. |
Keywords: |
Willingness to Compete, Gender, BDM mechanism |
JEL: |
C91 D03 |
Date: |
2017–07 |
URL: |
http://d.repec.org/n?u=RePEc:inh:wpaper:2017-5&r=spo |