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Reputational Concerns in Repeated Rent-Seeking Contests

Author

Listed:
  • Francesco Fallucchi

    (School of Economics, University of East Anglia)

  • Elke Renner

    (School of Economics, University of Nottingham)

Abstract

We experimentally investigate how reputational concerns affect behavior in repeated Tullock contests by comparing expenditures of participants interacting in fixed groups with the expenditures of participants interacting with randomly changing opponents. When participants receive full information about the choices and earnings of all contestants at the end of each contest we find no difference between contest expenditures in fixed and randomly changing groups. However, when participants only observe their own earnings at the end of each contest they are significantly more aggressive when they interact in fixed groups. This result can be explained by a dominance or status seeking motive.

Suggested Citation

  • 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.
    • Handle: RePEc:not:notcdx:2016-05
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    References listed on IDEAS

    as
    1. Fallucchi, Francesco & Renner, Elke & Sefton, Martin, 2013. "Information feedback and contest structure in rent-seeking games," European Economic Review, Elsevier, vol. 64(C), pages 223-240.
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    4. 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.
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    11. Shakun D. Mago & Anya C. Savikhin & Roman M. Sheremeta, 2012. "Facing Your Opponents: Social identification and information feedback in contests," Working Papers 12-15, Chapman University, Economic Science Institute.
    12. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603.
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    Cited by:

    1. 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.
    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.

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    Keywords

    Contests; experiments; matching protocol; information feedback;
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