.... In previous empirical research investigating competition, participants only experience the presence of others when working on some common task (the “mere physical presence” effect, e.g. Guerin, 1986), are instructed to outperform physically or virtually present others without being offered monetary rewards...

... to peers. Design/methodology/approach A conceptual model is proposed of how research on social comparison, competition and financial risk taking may explain increased investor risk taking induced by rank-based incentives. Research findings in each of the strands of research are reviewed. Findings...