Envy and Loss Aversion in Tournaments
Abstract
In tournaments, the large variance in effort provision is incompatible with standard economic theory. In our experiment we test theoretical predictions about the role of envy and loss aversion in tournaments. Our results confirm that envy implies higher effort while loss aversion increases the variance of effort. Moreover, we show that standard theory provides a good explanation for competitive behavior when envy and loss aversion do not play a role in the decision making process.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.Bibliographic Info
Paper provided by Thurgauer Wirtschaftsinstitut, Universität Konstanz in its series TWI Research Paper Series with number 52.Length:
Date of creation: 2010
Date of revision:
Handle: RePEc:twi:respas:0052
Contact details of provider:
Postal: Hauptstr. 90, CH-8280 Kreuzlingen 2
Phone: +41-71-677 05 10
Fax: +41-71-677 05 11
Email:
Web page: http://www.twi-kreuzlingen.ch/
More information through EDIRC
Related research
Keywords: Tournament; Envy; Loss Aversion;This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-10 (All new papers)
- NEP-EXP-2010-07-10 (Experimental Economics)
- NEP-HPE-2010-07-10 (History & Philosophy of Economics)
- NEP-NEU-2010-07-10 (Neuroeconomics)
- NEP-UPT-2010-07-10 (Utility Models & Prospect Theory)
References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Blog mentions
As found by EconAcademics.org, the blog aggregator for Economics research:- Envy and Loss Aversion in Tournaments
by Miguel in Simoleon Sense on 2010-07-15 23:05:35
Cited by:
- David, Gill & Rebecca, Stone, 2012. "Desert and inequity aversion in teams," MPRA Paper 36864, University Library of Munich, Germany.
- David Gill & Rebecca Stone, 2011. "Desert and Inequity Aversion in Teams," Economics Series Working Papers 563, University of Oxford, Department of Economics.
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:twi:respas:0052For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ulrich Wacker).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.

