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Asymmetric Discouragement in Asymmetric Contests

Listed author(s):
  • Christoph March
  • Marco Sahm

We provide new experimental evidence which suggests an asymmetric discouragement effect in lottery contests with heterogeneous abilities. Compared to a symmetric contest, subjects invest less effort when facing a stronger opponent, but they invest the same when facing a weaker opponent. Our results can be explained by a simple model of disappointment aversion.

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File URL: http://www.cesifo-group.de/DocDL/cesifo1_wp6108.pdf
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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 6108.

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Date of creation: 2016
Handle: RePEc:ces:ceswps:_6108
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