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Is Tiger Woods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes

Devin G. Pope
University of Pennsylvania - The Wharton School

Maurice E. Schweitzer
University of Pennsylvania - Operations & Information Management Department


June 13, 2009


Abstract:     
Although experimental studies have documented systematic decision errors, many leading scholars believe that experience, competition, and large stakes will reliably extinguish biases. We test for the presence of a fundamental bias, loss aversion, in a high-stakes context: professional golfers’ performance on the PGA TOUR. Golf provides a natural setting to test for loss aversion because golfers are rewarded for the total number of strokes they take during a tournament, yet each individual hole has a salient reference point, par. We analyze over 1.6 million putts using precise laser measurements and find evidence that even the best golfers - including Tiger Woods - show evidence of loss aversion. On average, this bias costs the best golfers over $1.2 million in tournament winnings per year.

Keywords: Loss Aversion, Behavioral Economics

Working Paper Series

Date posted: June 17, 2009 ; Last revised: June 17, 2009

Suggested Citation

Pope, Devin G. and Schweitzer, Maurice E., Is Tiger Woods Loss Averse? Persistent Bias in the Face of Experience, Competition, and High Stakes (June 13, 2009). Available at SSRN: http://ssrn.com/abstract=1419027


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Contact Information

Devin G. Pope (Contact Author)
University of Pennsylvania - The Wharton School ( email )
3730 Walnut Street Room 544
Philadelphia, PA 19104-6365
United States
Maurice E. Schweitzer
University of Pennsylvania - Operations & Information Management Department ( email )
Philadelphia, PA 19104
United States
215-898-4776 (Phone)
215-898-3664 (Fax)
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