Does Background Uncertainty Narrow the Gender Competition Gap? An experiment with non-students

J. Michelle Brock and Katya Vasilaky

Abstract: Existing studies on gender and competition often frame decisions as binary choices between competition and a sure outside option using both student and non-student participants. In contrast, our research employs a novel experimental design involving non-student participants to test the impact of incorporating background risk into both the decision to compete and the conventional sure outside option. The experiment employs multiple price lists (MPLs) to examine the range of choices individuals make regarding competition, rather than framing their decisions as a simple binary choice. Our initial results conform to past literature showing that women exhibit greater aversion to competition than men when the alternative is a guaranteed payout. However, when background risk or uncertainty is introduced equally across competitive and non-competitive options, women's willingness to compete aligns with men's,  closing the gender gap. This shift, attributed to a ``relative certainty effect,'' highlights the importance of considering compound risks and the framing of alternatives in understanding gender disparities in economic decision-making around competition. Our findings have implications for designing interventions to promote gender equity in competitive and entrepreneurial contexts.

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