Best-of-Three Contest Experiments: Strategic versus Psychological Momentum
Shakun Mago (),
Roman Sheremeta () and
MPRA Paper from University Library of Munich, Germany
We conduct an experimental analysis of a best-of-three contest. Intermediate prizes lead to higher efforts, while increasing the role of luck (as opposed to effort) leads to lower efforts. Both intermediate prizes and luck reduce the probability of contest ending in two rounds. The patterns of players’ efforts and the probability that a contest ends in two rounds are consistent with ‘strategic momentum’, i.e., momentum generated due to strategic incentives inherent in the contest. We do not find evidence for ‘psychological momentum’, i.e., momentum which emerges when winning affects players’ confidence. Similar to previous studies of contests, we find significantly higher efforts than predicted and strong heterogeneity in effort between subjects.
Keywords: best-of-three contest; experiments; strategic momentum; psychological momentum (search for similar items in EconPapers)
JEL-codes: D72 C72 C91 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cbe, nep-evo and nep-exp
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https://mpra.ub.uni-muenchen.de/43031/1/MPRA_paper_43031.pdf original version (application/pdf)
Journal Article: Best-of-three contest experiments: Strategic versus psychological momentum (2013)
Working Paper: Best-of-Three Contest Experiments: Strategic versus Psychological Momentum (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:43031
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