Documenting the functional form of dynamic risk‐taking behaviour in a real options context using sporting contests
Sean Pinder and
Accounting and Finance, 2018, vol. 58, issue S1, 159-178
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.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:58:y:2018:i:s1:p:159-178
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391
Access Statistics for this article
Accounting and Finance is currently edited by Robert Faff
More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().