Gender Differences in Risk-Taking: Evidence from Professional Basketball
32 Pages Posted: 7 Jul 2016
We analyze gender differences in risk-taking in high-pressure situations. Using novel data from professional athletes (NBA and WNBA), we find that male teams increase their risk-taking towards the end of matches when a successful risky strategy could secure winning the match. Female teams, in contrast, reduce their risk-taking in these situations. The less time left in a match, the larger is the gap. When the costs of an unsuccessful risky strategy are very large (losing the tournament), we find no increase in risk-taking for male teams.
Keywords: risk-taking, gender differences, tournament incentives
JEL Classification: D81, J16, L83
Suggested Citation: Suggested Citation