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Intergenerational Attitudes Towards Strategic Uncertainty and Competition: A Field Experiment in a Swiss Bank

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  • Thierry Madiès

    ()
    (CREM - Centre de Recherche en Economie et Management - CNRS : UMR6211 - Université de Rennes 1 - Université de Caen Basse-Normandie)

  • Marie Claire Villeval

    ()
    (GATE Lyon Saint-Étienne - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - École Normale Supérieure (ENS) - Lyon - PRES Université de Lyon - Université Jean Monnet - Saint-Etienne - Université Claude Bernard - Lyon I)

  • Malgorzata Wasmer

    (Department of Economics - University of Fribourg - University of Fribourg)

Abstract

With a market entry game inspired by Camerer and Lovallo (1999), we study the attitudes of junior and senior employees towards strategic uncertainty and competition. Seniors exhibit higher entry rates compared to juniors, especially when the market capacity is not too low or when earnings from entry depend on relative performance. This difference persists after controlling for attitudes towards non-strategic uncertainty and for beliefs on others' competitiveness and on relative ability. Seniors are more willing to compete when they predict a higher number of competitors. This contradicts the stereotype of less competitive older employees.

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Bibliographic Info

Paper provided by HAL in its series Post-Print with number halshs-00807436.

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Date of creation: 2013
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Publication status: Published, European Economic Review, 2013, 61, pp. 153-168
Handle: RePEc:hal:journl:halshs-00807436

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Keywords: Aging; risk; ambiguity; competitiveness; confidence; experiment;

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Cited by:
  1. Lindner, Florian, 2014. "Decision time and steps of reasoning in a competitive market entry game," Economics Letters, Elsevier, vol. 122(1), pages 7-11.

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