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Know when to fold’em: The flip side of grit

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  • Alaoui, Larbi
  • Fons-Rosen, Christian

Abstract

This paper investigates the way different sides of grit influence behavior. In addition to grit’s upside in achieving economic success associated with not giving up, it might also have a downside associated with not letting go. We split grit into two new categories, tenacity and diligence, and hypothesize that tenacity can lead individuals to go beyond their own intended plan of action when making a loss. We test the predictions with an experiment that elicits each individual’s plan of action which we compare to actual choice in a game of luck. Consistent with our priors, grittier individuals have a higher tendency to overplay, and tenacity alone captures the difficulty in respecting ex-ante preferences when this means accepting defeat. We then discuss the external validity of our findings.

Suggested Citation

  • Alaoui, Larbi & Fons-Rosen, Christian, 2021. "Know when to fold’em: The flip side of grit," European Economic Review, Elsevier, vol. 136(C).
    • Handle: RePEc:eee:eecrev:v:136:y:2021:i:c:s0014292121000891
    DOI: 10.1016/j.euroecorev.2021.103736
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    2. Larbi Alaoui & Antonio Penta, 2022. "Attitudes towards success and failure," Economics Working Papers 1831, Department of Economics and Business, Universitat Pompeu Fabra.

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    More about this item

    Keywords

    Noncognitive skills; Grit; Tenacity; Diligence;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • I20 - Health, Education, and Welfare - - Education - - - General

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