Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/101064
Authors: 
Hörtnagl, Tanja
Kerschbamer, Rudolf
Stracke, Rudi
Sunde, Uwe
Year of Publication: 
2013
Series/Report no.: 
Working Papers in Economics and Statistics 2013-29
Abstract: 
This paper investigates how heterogeneity in contestants' investment costs affects the competition intensity in a dynamic elimination contest. Theory predicts that the absolute level of investment costs has no effect on the competition intensity in homogeneous interactions. Relative cost differences in heterogeneous interactions, however, reduce equilibrium expenditures. Evidence from lab experiments for treatments with homogeneous participants is qualitatively in line with the theoretical prediction. The effect of cost differences on expenditures is positive rather than negative, however, in all heterogeneous treatments.
Subjects: 
Multi-Stage Contest
Heterogeneity
Experiment
Joy of Winning
JEL: 
C72
D72
Document Type: 
Working Paper

Files in This Item:
File
Size
981.43 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.