Risk taking behavior in tournaments: evidence from the NBA

Arbeitspapier

We empirically explore the relevance of risk taking behavior in tournaments. We make use of data from the NBA season 2007/2008 and measure risk taking by the fraction of three-point shots. Current heterogeneity of teams is taken into account by intermediate results. It turns out that indeed teams who are behind increase the risk in terms of more three-point attempts. We additionally analyze the consequences of this change in behavior. Enhanced risk taking is inefficient for the vast majority of cases and only beneficial in terms of a higher winning probability if a team is behind with a rather large amount of points. We discuss possible explanations for these decision errors.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IZA Discussion Papers ; No. 4812

Classification and Topics

• Classification: Wirtschaft
• Subject: Basketball ; NBA ; risk taking ; tournaments ; Risikopräferenz ; Extensives Spiel ; Ballsport ; Professioneller Sport ; Wirtschaftliche Effizienz ; USA

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Grund, Christian ; Höcker, Jan ; Zimmermann, Stefan
• Event: Veröffentlichung
• (who): Institute for the Study of Labor (IZA)
• (where): Bonn
• (when): 2010

Further information

• Handle: http://hdl.handle.net/10419/36061
• Last update: 10.03.2025, 11:46 AM CET