How confidence heterogeneity shapes effort and performance in tournaments and contests

Luis Santos-Pinto () and Petros G. Sekeris

Journal of Mathematical Economics, 2025, vol. 116, issue C

Abstract: This paper studies how heterogeneity in confidence biases affects players’ relative effort provision in tournaments and contests. We uncover a non-monotonic effect of confidence on equilibrium relative efforts and winning probabilities. A player with either a low or a high confidence exerts less effort than his rival at equilibrium. However, for intermediate confidence levels, the player exerts more effort than his rival.

Keywords: Overconfidence; Tournaments; Contests (search for similar items in EconPapers)
JEL-codes: C72 D91 M51 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:mateco:v:116:y:2025:i:c:s0304406824001290

DOI: 10.1016/j.jmateco.2024.103069

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