| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5057907 | Economics Letters | 2017 | 5 Pages |
Abstract
â¢We provide new experimental evidence on asymmetric contests.â¢Our findings suggest an asymmetric discouragement effect.â¢Compared to a symmetric contest, subjects invest less when facing a stronger opponent.â¢However, they invest the same when facing a weaker opponent.â¢Disappointment aversion rationalizes the results.
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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Authors
Christoph March, Marco Sahm,