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

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

Research output: Contribution to journalArticle

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 languageEnglish
JournalTheory and Decision
Early online date14 Nov 2019
DOIs
Publication statusE-pub ahead of print - 14 Nov 2019

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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