Performance Expectations and Risk-Taking: The Differential Effects of Favorite, Underdog, and Wildcard Statuses Across Competitive Contexts

Authors:

Cory Eisenhard Michigan State University
United States
Orcid:

James Matusik University of Georgia
United States
Orcid:

Rebecca Mitchell University of Colorado-Boulder
United States
Orcid:

Nicholas Hays Michigan State University
United States
Orcid:

Lakshita Boora Michigan State University
United States
Orcid:

Abstract: We develop theory regarding the risk-taking behavior of competitors clearly expected to win (favorites), competitors clearly expected to lose (underdogs), and competitors with uncertain expectations (wildcards) and make four claims: favorites will take more risks relative to underdogs, across contexts; wildcards will be less predictable in their risk-taking behavior, in general; wildcards in competitive contexts with many high intensity emotional cues will take risk at levels comparable to favorites, and in competitive contexts with many low intensity emotional cues will take risks at levels comparable to underdogs; and risk-seeking intentions are the mediating mechanism that explain the relationship between performance expectations, competitive context, and risk-taking behavior. Data across three studies, drawing upon both archival sources (Studies 1 and 2) and utilizing experimental designs (Study 3), provide support for our theorizing.

Track: ORG

Keywords: Underdog, performance expectations, risk-taking