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With or without siblings: Sorting into competition in the experimental labor market
Institution:1. The College of Economics and Trade, Hunan University, North Campus, Shi Jia Chong, Changsha, Hunan 410079, PR China;2. Center for Economics, Finance and Management Studies, Hunan University, North Campus, Shi Jia Chong, Changsha, Hunan, 410079, PR China;3. Southern Illinois University Carbondale, 1000 Faner Drive, Carbondale, IL62901, United States;1. Department of Marketing and Logistics Management, Chihlee University of Technology, Taiwan;2. Statistical Office, Ministry of the Transportation and Communications, Taiwan;3. Department of Applied Economics, National Chiayi University, Taiwan;1. School of International Trade and Economics, Central University of Finance and Economics, 39 South College Road, Haidian District, Beijing 100081, PR China;2. Department of International Economics & Trade, Nanjing University, 22 Hankou Road, Nanjing, 210093, PR China;1. School of International Trade and Economics, Central University of Finance and Economics, 39 South College Road, Haidian District, Beijing 100081, PR China;2. Department of International Economics & Trade, Nanjing University, 22 Hankou Road, Nanjing, 210093, PR China
Abstract:We employ a well-controlled laboratory experiment to examine whether only children and those with siblings differ in their willingness to compete. We find that only children are more likely to undervalue the chance of winning and shy away from competition, but they become to embrace competition as their self-assessed winning probability increases. Alternatively, once uncertainty of relative performance is removed, the gap in willingness to compete between the two groups disappears. Utilizing a two-stage model of decision weights under uncertainty, we find that such a gap is predominantly caused by their heterogeneous attitudes toward ambiguity.
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