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On the evolution of prize perceptions in contests

  • Boudreau, James W.
  • Shunda, Nicholas

We apply an indirect evolutionary approach to players’ perceived prize valuations in contests. Evolution in finite populations leads to preferences that overstate the prize’s material value and induce overexpenditure. We establish an equivalence between evolutionarily stable strategies and the behavior induced by evolutionarily stable preferences.

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File URL: http://www.sciencedirect.com/science/article/pii/S0165176512002005
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Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 116 (2012)
Issue (Month): 3 ()
Pages: 498-501

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Handle: RePEc:eee:ecolet:v:116:y:2012:i:3:p:498-501
DOI: 10.1016/j.econlet.2012.04.059
Contact details of provider: Web page: http://www.elsevier.com/locate/ecolet

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  8. Sheremeta, Roman, 2009. "Experimental Comparison of Multi-Stage and One-Stage Contests," MPRA Paper 49884, University Library of Munich, Germany.
  9. Kai A. Konrad, 2002. "Altruism and Envy in Contests: An Evolutionarily Stable Symbiosis," CESifo Working Paper Series 825, CESifo Group Munich.
  10. Benedikt Herrmann & Henrik Orzen, 2008. "The appearance of homo rivalis: Social preferences and the nature of rent seeking," Discussion Papers 2008-10, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
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  12. Oliver Kirchkamp,, 2006. "Less fighting than expected — experiments with wars of attrition and all-pay auctions," CRIEFF Discussion Papers 0607, Centre for Research into Industry, Enterprise, Finance and the Firm.
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  15. Wärneryd, Karl, 2001. "Rent, risk, and replication: preference adaptation in winner-take-all markets
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    ," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-10, Social Science Research Center Berlin (WZB).
  16. John Morgan & Henrik Orzen & Martin Sefton, 2012. "Endogenous entry in contests," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 51(2), pages 435-463, October.
  17. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
  18. Nti, Kofi O, 1999. "Rent-Seeking with Asymmetric Valuations," Public Choice, Springer, vol. 98(3-4), pages 415-30, March.
  19. Potters, Jan & de Vries, Casper G. & van Winden, Frans, 1998. "An experimental examination of rational rent-seeking," European Journal of Political Economy, Elsevier, vol. 14(4), pages 783-800, November.
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  21. Kooreman, Peter & Schoonbeek, Lambert, 1997. "The specification of the probability functions in Tullock's rent-seeking contest," Economics Letters, Elsevier, vol. 56(1), pages 59-61, September.
  22. Erik Mohlin, 2010. "Internalized social norms in conflicts: an evolutionary approach," Economics of Governance, Springer, vol. 11(2), pages 169-181, April.
  23. Skaperdas, Stergios, 1996. "Contest Success Functions," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-90, February.
  24. Wolfgang Leininger, 2003. "On evolutionarily stable behavior in contests," Economics of Governance, Springer, vol. 4(3), pages 177-186, November.
  25. Burkhard Hehenkamp & Wolfgang Leininger & Alex Possajennikov, 2003. "Evolutionary Equilibrium in Tullock Contests: Spite and Overdissipation," Discussion Papers in Economics 03_01, University of Dortmund, Department of Economics.
  26. Possajennikov Alex, 2010. "On Delegation in Contests and the Survival of Payoff Maximizing Behavior," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-13, June.
  27. John Morgan, 2000. "Financing Public Goods by Means of Lotteries," Review of Economic Studies, Oxford University Press, vol. 67(4), pages 761-784.
  28. Michelle R. Garfinkel & Stergios Skaperdas, 2006. "Economics of Conflict: An Overview," Working Papers 050623, University of California-Irvine, Department of Economics, revised Sep 2006.
  29. Fang, Hanming, 2002. "Lottery versus All-Pay Auction Models of Lobbying," Public Choice, Springer, vol. 112(3-4), pages 351-71, September.
  30. Arye L. Hillman & John G. Riley, 1987. "Politically Contestable Rents and Transfers," UCLA Economics Working Papers 452, UCLA Department of Economics.
  31. Farmer, Amy & Pecorino, Paul, 1999. "Legal Expenditure as a Rent-Seeking Game," Public Choice, Springer, vol. 100(3-4), pages 271-88, September.
  32. Frederik Schmidt, 2009. "Evolutionary stability of altruism and envy in Tullock contests," Economics of Governance, Springer, vol. 10(3), pages 247-259, July.
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