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Group size and matching protocol in contests

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  • Kyung Hwan Baik
  • Subhasish M. Chowdhury
  • Abhijit Ramalingam

Abstract

We investigate the effects of group size and matching protocol in Tullock contest experiments. In a 2 × 2 factorial design, we implement partner and random stranger‐matching protocols in contests between two and between three players. Group size does not affect overall absolute bid levels, but the rate of overbidding is lower in two‐player groups across matching protocols. Matching protocol does not affect bidding behaviour for three‐player groups, but a partner matching reduces both the level and dispersion of bids in two‐player groups. These results show the joint effect of group size and matching protocol and suggest that identifiability in repeated play facilitates tacit collusion. Taille du groupe et protocole d’association dans les concours. Dans cet article, nous étudions les effets de la taille du groupe et du « protocole d’appariement » (matching protocol) dans les expériences de Tullock relatives aux concours. Dans un plan factoriel 2 x 2, nous mettons en œuvre des protocoles d’appariement des partenaires et d’appariement aléatoires d’inconnus pour des concours entre deux et trois joueurs. La taille du groupe n’a aucun effet sur le niveau global des mises en valeur absolue; néanmoins, d’un protocole à l’autre, la fréquence des surenchères est plus faible lorsqu’il n’y a que deux joueurs. Le protocole d’appariement n’entraîne aucune répercussion quant aux comportements de mise pour les groupes de trois joueurs; néanmoins, lorsqu’il n’y a que deux joueurs, la présence d’un partenaire réduit le niveau et la dispersion des mises. Ces résultats montrent l’effet conjugué de la taille du groupe et du protocole d’appariement suggérant que « l’identifiabilité » dans les jeux répétés facilite la collusion tacite.

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  • Kyung Hwan Baik & Subhasish M. Chowdhury & Abhijit Ramalingam, 2021. "Group size and matching protocol in contests," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(4), pages 1716-1736, November.
  • Handle: RePEc:wly:canjec:v:54:y:2021:i:4:p:1716-1736
    DOI: 10.1111/caje.12557
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    Cited by:

    1. Francesco Fallucchi & Jan Niederreiter & Massimo Riccaboni, 2021. "Learning and dropout in contests: an experimental approach," Theory and Decision, Springer, vol. 90(2), pages 245-278, March.
    2. Masiliūnas, Aidas & Nax, Heinrich H., 2020. "Framing and repeated competition," Games and Economic Behavior, Elsevier, vol. 124(C), pages 604-619.
    3. Francesco Fallucchi & Andrea Mercatanti & Jan Niederreiter, 2021. "Identifying types in contest experiments," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(1), pages 39-61, March.
    4. Kyung Hwan Baik & Subhasish M. Chowdhury & Abhijit Ramalingam, 2020. "The effects of conflict budget on the intensity of conflict: an experimental investigation," Experimental Economics, Springer;Economic Science Association, vol. 23(1), pages 240-258, March.
    5. Subhasish M. Chowdhury & Anwesha Mukherjee & Theodore L. Turocy, 2020. "That’s the ticket: explicit lottery randomisation and learning in Tullock contests," Theory and Decision, Springer, vol. 88(3), pages 405-429, April.
    6. Boosey, Luke & Brookins, Philip & Ryvkin, Dmitry, 2017. "Contests with group size uncertainty: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 105(C), pages 212-229.
    7. Bettina Rockenbach & Sebastian Schneiders & Marcin Waligora, 2018. "Pushing the bad away: reverse Tullock contests," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(1), pages 73-85, July.
    8. Nelson, Arthur B, 2020. "Deterrence in sequential contests: An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 86(C).
    9. Arthur B. Nelson, 2019. "Deterrence in sequential contests: An experimental study," Working Papers wp2019_11_02, Department of Economics, Florida State University.
    10. Jordan Adamson & Erik O. Kimbrough, 2018. "The Supply Side Determinants of Territory and Conflict," Working Papers 18-10, Chapman University, Economic Science Institute.
    11. Francesco Fallucchi & Elke Renner, 2016. "Reputational Concerns in Repeated Rent-Seeking Contests," Discussion Papers 2016-05, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.

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    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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