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The Impact of Advice on Selection into Competition

AuthorsBrandts, Jordi ; Groenert, Valeska; Rott, Christina
Keywordsgender gap in competitiveness
Issue Date29-Aug-2012
CitationEuropean Economic Association & Econometric Society. 2012 Parallel Meetings
AbstractWe conduct a laboratory experiment, in which subjects decide whether to enter a tournament, in which they have to perform a real effort task. In one treatment subjects receive advice on whether to participate in the tournament. Advice is given by subjects who have already had some experience with the same decision and have some informational advantage. We show that advice significantly improves the entry decision of subjects. The total costs of wrong entry decisions go significantly down and the payoffs of those who receive advice go up. This is mainly driven by the fact that high ability women enter the tournament significantly more often while low ability men enter significantly less often. Though the gender gap in tournament entry is reduced, it still persists. Overall, advice given tends to be ‘good’ advice. Finally, we find that women are slightly more hesitant than men to advice entry into tournament.
DescriptionComunicación presentada en European Economic Association & Econometric Society. 2012 Parallel Meetings, celebrada del 27 al 31 de agosto de 2012 en Málaga (España)
Appears in Collections:(IAE) Comunicaciones congresos
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