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How confidence heterogeneity shapes effort and performance in tournaments and contests

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  • Santos-Pinto, Luís
  • Sekeris, Petros G.

Abstract

This paper studies how heterogeneity in confidence biases affects players’ relative effort provision in tournaments and contests. We uncover a non-monotonic effect of confidence on equilibrium relative efforts and winning probabilities. A player with either a low or a high confidence exerts less effort than his rival at equilibrium. However, for intermediate confidence levels, the player exerts more effort than his rival.

Suggested Citation

  • Santos-Pinto, Luís & Sekeris, Petros G., 2025. "How confidence heterogeneity shapes effort and performance in tournaments and contests," Journal of Mathematical Economics, Elsevier, vol. 116(C).
    • Handle: RePEc:eee:mateco:v:116:y:2025:i:c:s0304406824001290
    DOI: 10.1016/j.jmateco.2024.103069
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    References listed on IDEAS

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    More about this item

    Keywords

    Overconfidence; Tournaments; Contests;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M51 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Firm Employment Decisions; Promotions

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