- 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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