Documenting the functional form of dynamic risk-taking behaviour in a real options context using sporting contests

Title: Documenting the functional form of dynamic risk-taking behaviour in a real options context using sporting contests
Creator: Easton, Stephen; Pinder, Sean; Stern, Steven
Relation: Accounting & Finance Vol. 58, Issue S1, p. 159-178
Publisher Link: http://dx.doi.org/10.1111/acfi.12298
Publisher: John Wiley & Sons
Resource Type: journal article
Date: 2018
Description: Changes in risk-taking behaviour based on interim performance are examined in high-stakes competition. A real options framework is used to provide a richer characterisation of risk-taking behaviour than examined in extant studies. This framework is applied to an examination of ball-by-ball data from 1207 cricket matches. Consistent with modelled expectations, risk taking is found to increase (decrease) at a decreasing rate following below par (above par) interim performance. This result is especially strong in situations where the resources remaining are low, a result predicted by the real options model.
Subject: risk-taking behaviour; interim performance; real options
Identifier: http://hdl.handle.net/1959.13/1450510
Identifier: uon:43952
Identifier: ISSN:0810-5391
Language: eng
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