That's the ticket: Explicit lottery randomisation and learning in Tullock contests

Subhasish Modak Chowdhury; Anwesha Mukherjee; Theodore Turocy

doi:10.1007/s11238-019-09731-6

That's the ticket: Explicit lottery randomisation and learning in Tullock contests

Subhasish Modak Chowdhury, Anwesha Mukherjee, Theodore Turocy

Research output: Contribution to journal › Article › peer-review

4 Citations (Scopus)

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Abstract

Most laboratory experiments studying Tullock contest games find that bids significantly exceed the risk-neutral equilibrium predictions. We test the generalisability of these results by comparing a typical experimental implementation of a contest against the familiar institution of a ticket-based raffle. We find that in the raffle (1) initial bid levels are significantly lower and (2) bids adjust more rapidly towards expected-earnings best responses. We demonstrate the robustness of our results by replicating them across two continents at two university labs with contrasting student profiles.

Original language	English
Pages (from-to)	405–429
Number of pages	25
Journal	Theory and Decision
Volume	88
Issue number	3
Early online date	14 Nov 2019
DOIs	https://doi.org/10.1007/s11238-019-09731-6
Publication status	Published - Apr 2020

Keywords

AVERSION
BEHAVIOR
CONFLICT
EQUILIBRIA
Experiment
Learning
Mechanism equivalence
RENT-SEEKING
Raffle

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10.1007/s11238-019-09731-6Licence: CC BY

Published_VersionFinal published version, 1.06 MBLicence: CC BY

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abstract = "Most laboratory experiments studying Tullock contest games find that bids significantly exceed the risk-neutral equilibrium predictions. We test the generalisability of these results by comparing a typical experimental implementation of a contest against the familiar institution of a ticket-based raffle. We find that in the raffle (1) initial bid levels are significantly lower and (2) bids adjust more rapidly towards expected-earnings best responses. We demonstrate the robustness of our results by replicating them across two continents at two university labs with contrasting student profiles.",

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KW - CONFLICT

KW - EQUILIBRIA

KW - Experiment

KW - Learning

KW - Mechanism equivalence

KW - RENT-SEEKING

KW - Raffle

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That's the ticket: Explicit lottery randomisation and learning in Tullock contests

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Keywords

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Theodore Turocy

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