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Competitive in the lab, successful in the field?

Berge, Lars Ivar Oppedal; Bjorvatn, Kjetil; Pires, Armando José Garcia; Tungodden, Bertil
Working paper
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URI
http://hdl.handle.net/11250/279043
Date
2015-01
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  • Working papers (SNF) [809]
Abstract
A number of lab experiments in recent years have analyzed people’s willingness to compete.

But to what extent is competitive behavior in the lab associated with field choices and outcomes?

We address this question in a setting of entrepreneurship, where we combine lab evidence on

competitiveness with field evidence on investment, employment, profit, and sales. We find

strong evidence that competitiveness in the lab is positively associated with competitive choices

in the field (investment and employment) and weaker, but suggestive, evidence of a positive

link to successful field outcomes (profit and sales). Other non-cognitive skills measured in the

lab, including risk- and time preferences and confidence, and cognitive skills are less

consistently associated with the field variables. Our findings suggest that the willingness to

compete in the lab identifies an important entrepreneurial trait that shapes the entrepreneur’s

field choices and to some extent also field outcomes.
Publisher
SNF
Series
Working paper;02/15

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