Aging and Attitudes Towards Strategic Uncertainty and Competition: An Artefactual Field Experiment in a Swiss Bank

Thierry Madiès (1) , Marie Claire Villeval (2) , Malgorzata Wasmer (1)

1 Department of Economics - University of Fribourg
2 GATE Lyon Saint-Étienne - Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne

We study the attitudes of junior and senior employees towards strategic uncertainty and competition, by means of a market entry game inspired by Camerer and Lovallo (1999). Seniors exhibit higher entry rates compared to juniors, especially when earnings depend on relative performance. This difference persists after controlling for attitudes towards non-strategic uncertainty and for beliefs on others' competitiveness and ability. Social image matters, as evidenced by the fact that seniors enter more when they predict others enter more and when they are matched with a majority of juniors. This contradicts the stereotype of risk averse and less competitive older employees.

Mots clés: Aging; risk; ambiguity; competitiveness; self-image; confidence; experiment

Domaines: Economies et finances

Thierry Madiès, Marie Claire Villeval, Malgorzata Wasmer. Aging and Attitudes Towards Strategic Uncertainty and Competition: An Artefactual Field Experiment in a Swiss Bank. 2012. ⟨halshs-00702579⟩