Transcription of Psychological Pressure in Competitive Environments ...
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Psychological Pressure in Competitive Environments ...
Psychological Pressure in CompetitiveEnvironments: evidence from a RandomizedNatural ExperimentJose Apesteguia Ignacio Palacios-Huerta Forthcoming in theAmerican Economic ReviewSeptember 2009 AbstractEmotions can have major e ects on performance and socioeconomic out-comes. We study a natural experiment where two teams of professionals com-pete in a tournament taking turns in a sequence. As the sequential order isdetermined by the random outcome of a coin ip, the treatment and controlgroups are determined via explicit randomization. Hence, absent any psycho-logical e ects, both teams should have the same probability of winning. Yet, we nd a systematic rst-mover advantage. Further, professionals are self-awareof their own Psychological e ects and, when given the chance, they rationallyreact by systematically taking advantage of these e ects.
Psychological Pressure in Competitive Environments: Evidence from a Randomized Natural Experiment Jose Apesteguia Ignacio Palacios-Huerta Forthcoming in the American Economic Review
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