Winners and losers in investment competition – Experimental study

Zvika Afik, Hofit Hamrani Dafna, Yaron Lahav

Research output: Contribution to journalArticlepeer-review

1 Scopus citations


We report the results of lab experiments on investment competition, where all subjects receive their accumulated earnings and the subject with the highest returns earns an additional bonus. We find that ranking is negatively correlated with portfolio risk: when subjects realize that their rank is relatively low, they increase their portfolio risk. This behavior is shared by all subjects in all rankings during all trade periods, regardless of the risk-free rate. Furthermore, in a competition, subjects respond to rank changes, increasing (decreasing) their portfolio risk after experiencing a decrease (increase) in their rating, regardless of their ranking.

Original languageEnglish
Article number105019
JournalFinance Research Letters
StatePublished - Mar 2024
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2024 Elsevier Inc.


  • Investment competition
  • Investment decision
  • Portfolio choice
  • Portfolio risk
  • Ranking
  • Relative performance


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