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Interim performance information and risk taking in a tournament—Field evidence from professional basketball

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  • Wen‐Jhan Jane
Abstract
This paper examines whether the shooting decisions under the leading (/lagging) condition moderate (/stimulate) risk taking. Using the task of field goal attempts in basketball competitions involving National Basketball Association regular season and playoff games, I find strong evidence of a significantly causal effect of interim performance information (IPI) on the probability of a risky shooting. Our results support the leading, lagging, and nothing‐to‐lose effects on individual risk taking under different conditions of time and score proximation in high‐stakes dynamic competitions when performing skill‐based tasks. Furthermore, the IPI effects are found to differ between Covid and non‐Covid periods.

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  • Wen‐Jhan Jane, 2024. "Interim performance information and risk taking in a tournament—Field evidence from professional basketball," Scottish Journal of Political Economy, Scottish Economic Society, vol. 71(2), pages 145-174, May.
    • Handle: RePEc:bla:scotjp:v:71:y:2024:i:2:p:145-174
    DOI: 10.1111/sjpe.12359
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