That’s the ticket: explicit lottery randomisation and learning in Tullock contests

Subhasish Chowdhury, Anwesha Mukherjee and Theodore Turocy
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Anwesha Mukherjee: Technische Universität München

Theory and Decision, 2020, vol. 88, issue 3, No 3, 405-429

Abstract: 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.

Keywords: Raffle; Learning; Mechanism equivalence; Experiment (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s11238-019-09731-6

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