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Title:Endogenous entry in contests PDF Logo
Authors:Morgan, John
Orzen, Henrik
Sefton, Martin
Issue Date:2008
Series/Report no.:CeDEx discussion paper series 2008-08
Abstract:We report the results of laboratory experiments on rent-seeking contests with endogenous participation. Theory predicts that (a) contest entry and rent-seeking expenditures increase with the size of the prize; and (b) earnings are equalized between the contest and the outside option. While the directional predictions offered in (a) are supported in the data, the level predictions are not. Prediction (b) is not supported in the data: When the prize is large, contest participants earn more than the outside option. When the prize is small, contest participants earn less. Previous studies of gender and contest competition suggest that females should (a) not perform as well in the contest; and (b) enter at a lower rate. We find some support for (a) but not for (b). Women participate in the contest at the same rate as men.
Subjects:contests
competition
entry
experiments
JEL:C9
D4
D72
Document Type:Working Paper
Appears in Collections:CeDEx Discussion Paper Series, The University of Nottingham

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