Economics at your fingertips  

New Hampshire Effect: behavior in sequential and simultaneous multi-battle contests

Shakun D. Mago and Roman M. Sheremeta ()
Additional contact information
Shakun D. Mago: University of Richmond
Roman M. Sheremeta: Case Western Reserve University

Experimental Economics, 2019, vol. 22, issue 2, 325-349

Abstract: Abstract Sequential multi-battle contests are predicted to induce lower expenditure than simultaneous contests. This prediction is a result of a “New Hampshire Effect”—a strategic advantage created by the winner of the first battle. Although our laboratory study provides evidence for the New Hampshire Effect, we find that sequential contests generate significantly higher (not lower) expenditure than simultaneous contests. This is mainly because in sequential contests, there is significant over-expenditure in all battles. We suggest sunk cost fallacy and utility of winning as two complementary explanations for this behavior and provide supporting evidence.

Keywords: Election; Sequential contests; Simultaneous contests; Experiments (search for similar items in EconPapers)
JEL-codes: C72 C73 C91 D72 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10683/PS2

Access Statistics for this article

Experimental Economics is currently edited by David J. Cooper, Lata Gangadharan and Charles N. Noussair

More articles in Experimental Economics from Springer, Economic Science Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-05-25
Handle: RePEc:kap:expeco:v:22:y:2019:i:2:d:10.1007_s10683-018-9569-0