An experimental investigation of asymmetric contests
Contest theory has been used in Industrial Organization to describe phenomena like R&D races, or efforts to defend a monopoly position. When pricing behavior is constrained by regulators, competition can also take the form of a contest. This paper reports on an experimental test of the effects of asymmetry in the Tullock contest success function. Both the simultaneous-move and sequential-move frameworks are considered. Despite high levels of overbidding across the different conditions, the introduction of asymmetries in the contest function generates experimental behavior on aggregate qualitatively consistent with the theoretical predictions. At the individual level, behavior seems divided into those subjects who bid very high amounts and those who bid very low amounts.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-98, December.
- Huck, Steffen & Muller, Wieland & Normann, Hans-Theo, 2002.
"To Commit or Not to Commit: Endogenous Timing in Experimental Duopoly Markets,"
Games and Economic Behavior,
Elsevier, vol. 38(2), pages 240-264, February.
- Huck, S. & Müller, W. & Normann, H.T., 2002. "To commit or not to commit : Endogenous timing in experimental duopoly markets," Other publications TiSEM 52f12df4-ce93-42ae-b8f4-5, Tilburg University, School of Economics and Management.
- Huck, Steffen & Müller, Wieland & Normann, Hans-Theo, 1999. "To commit or not to commit: Endogenous timing in experimental duopoly markets," SFB 373 Discussion Papers 1999,38, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Steffen Huck & Wieland Müller & Hans-Theo Normann, 1999. "To commit or not to commit: Endogenous timing in experimental duopoly markets," Experimental 9906002, EconWPA.
- Ernst Fehr & Klaus M. Schmidt, 1999.
"A Theory of Fairness, Competition, and Cooperation,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 114(3), pages 817-868.
- Fehr, Ernst & Schmidt, Klaus M., . "A theory of fairness, competition, and cooperation," Chapters in Economics, University of Munich, Department of Economics.
- Ernst Fehr & Klaus M. Schmidt, . "A Theory of Fairness, Competition and Cooperation," IEW - Working Papers 004, Institute for Empirical Research in Economics - University of Zurich.
- Fehr, Ernst & Schmidt, Klaus M., 1998. "A Theory of Fairness, Competition and Cooperation," CEPR Discussion Papers 1812, C.E.P.R. Discussion Papers.
- Fehr, Ernst & Schmidt, Klaus M., 1999. "A theory of fairness, competition, and cooperation," Munich Reprints in Economics 20650, University of Munich, Department of Economics.
- Kai A. Konrad, 2004.
"Altruism and envy in contests: An evolutionarily stable symbiosis,"
Social Choice and Welfare,
Springer;The Society for Social Choice and Welfare, vol. 22(3), pages 479-490, 06.
- Kai A. Konrad, 2002. "Altruism and Envy in Contests: An Evolutionarily Stable Symbiosis," CESifo Working Paper Series 825, CESifo Group Munich.
- Konrad, Kai A., 2002.
"Altruism and envy in contests: an evolutionarily stable symbiosis
[Altruismus und Neid in Turnieren: Eine evolutionär-stabile Symbiose]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 02-19, Social Science Research Center Berlin (WZB).
- Arye Hillman & Dov Samet, 1987. "Dissipation of contestable rents by small numbers of contenders," Public Choice, Springer, vol. 54(1), pages 63-82, January.
- Weimann, Joachim & Yang, Chun-Lei & Vogt, Carsten, 2000. "An experiment on sequential rent-seeking," Journal of Economic Behavior & Organization, Elsevier, vol. 41(4), pages 405-426, April.
- Cox, James C & Smith, Vernon L & Walker, James M, 1988. "Theory and Individual Behavior of First-Price Auctions," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 61-99, March.
- Andrew Schotter & Keith Weigelt, 1992. "Asymmetric Tournaments, Equal Opportunity Laws, and Affirmative Action: Some Experimental Results," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 511-539.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
- Blanco, Mariana & Engelmann, Dirk & Normann, Hans Theo, 2011.
"A within-subject analysis of other-regarding preferences,"
Games and Economic Behavior,
Elsevier, vol. 72(2), pages 321-338, June.
- Blanco, Mariana & Engelmann, Dirk & Normann, Hans-Theo, 2010. "A within-subject analysis of other-regarding preferences," DICE Discussion Papers 06, Düsseldorf Institute for Competition Economics (DICE), University of Düsseldorf.
- Bull, Clive & Schotter, Andrew & Weigelt, Keith, 1985.
"Tournaments and Piece Rates: An Experimental Study,"
85-21, C.V. Starr Center for Applied Economics, New York University.
- Bull, Clive & Schotter, Andrew & Weigelt, Keith, 1987. "Tournaments and Piece Rates: An Experimental Study," Journal of Political Economy, University of Chicago Press, vol. 95(1), pages 1-33, February.
- Glenn C. Loury, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, Oxford University Press, vol. 93(3), pages 395-410.
- Millner, Edward L & Pratt, Michael D, 1991. "Risk Aversion and Rent-Seeking: An Extension and Some Experimental Evidence," Public Choice, Springer, vol. 69(1), pages 81-92, February.
- Shogren, Jason F & Baik, Kyung H, 1991. "Reexamining Efficient Rent-Seeking in Laboratory Markets," Public Choice, Springer, vol. 69(1), pages 69-79, February.
- Müller, W. & Schotter, A., 2003.
"Workaholics and Drop Outs in Optimal Organizations,"
2003-43, Tilburg University, Center for Economic Research.
- Wieland Muller & Andrew Schotter, 2007. "Workaholics and Drop Outs in Optimal Organizations," Working Papers 0022, New York University, Center for Experimental Social Science.
- O'Keeffe, Mary & Viscusi, W Kip & Zeckhauser, Richard J, 1984. "Economic Contests: Comparative Reward Schemes," Journal of Labor Economics, University of Chicago Press, vol. 2(1), pages 27-56, January.
- Konrad, Kai A & Schlesinger, Harris, 1997. "Risk Aversion in Rent-Seeking and Rent-Augmenting Games," Economic Journal, Royal Economic Society, vol. 107(445), pages 1671-83, November.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Skaperdas, Stergios & Gan, Li, 1995. "Risk Aversion in Contests," Economic Journal, Royal Economic Society, vol. 105(431), pages 951-62, July.
- Davis, Douglas D & Reilly, Robert J, 1998.
"Do Too Many Cooks Always Spoil the Stew? An Experimental Analysis of Rent-Seeking and the Role of a Strategic Buyer,"
Springer, vol. 95(1-2), pages 89-115, April.
- Douglas Davis & Robert Reilly, 1998. "Do too many cooks always spoil the stew? An experimental analysis of rent-seeking and the role of a strategic buyer," Public Choice, Springer, vol. 95(1), pages 89-115, April.
When requesting a correction, please mention this item's handle: RePEc:eee:indorg:v:27:y:2009:i:5:p:582-591. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.