Signaling strength? An analysis of decision making in the Weakest Link

We analyze contestants' behavior in the game show "The Weakest Link". We focus on banking decisions, where a contestant chooses to secure an amount of money for the eventual winner, or to risk it on a general knowledge question. We find that contestants do not use the banking strategy that maximizes total expected prize money. Average earnings could be at least 17% higher. Our results suggest that contestants are not overconfident, but do try to convince other contestants that their ability is higher than it really is, in order to increase chances of winning the prize. We argue that this mechanism may also be applicable to other situations that are of economic interest.