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Endowment effects in contests

  • Price, Curtis R.
  • Sheremeta, Roman M.

We experimentally study overbidding in contests and find that overbidding is significantly higher when subjects are given a large per-experiment endowment rather than when the endowment is given per-period. Risk-aversion and non-monetary utility of winning can partially explain our findings.

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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 111 (2011)
Issue (Month): 3 (June)
Pages: 217-219

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Handle: RePEc:eee:ecolet:v:111:y:2011:i:3:p:217-219
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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