Abstract

http://ssrn.com/abstract=1419027
 
 

Citations (14)



 


 



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


Devin G. Pope


University of Chicago - Booth School of Business

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.

Number of Pages in PDF File: 48

Keywords: Loss Aversion, Behavioral Economics

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Date posted: 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 or http://dx.doi.org/10.2139/ssrn.1419027

Contact Information

Devin G. Pope (Contact Author)
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
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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Citations:  14

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