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

Subhasish M. Chowdhury; Anwesha Mukherjee; Theodore L. Turocy

doi:10.1007/s11238-019-09731-6

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

Subhasish M. Chowdhury, Anwesha Mukherjee, Theodore L. Turocy

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

3 Citations (SciVal)

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 - 1 Apr 2020

Keywords

Experiment
Learning
Mechanism equivalence
Raffle

ASJC Scopus subject areas

Decision Sciences(all)
Developmental and Educational Psychology
Arts and Humanities (miscellaneous)
Applied Psychology
Social Sciences(all)
Economics, Econometrics and Finance(all)
Computer Science Applications

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10.1007/s11238-019-09731-6

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AU - Turocy, Theodore L.

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AB - 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 - Learning

KW - Mechanism equivalence

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

Abstract

Keywords

ASJC Scopus subject areas

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