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
Pages (from-to)405-429
JournalTheory and Decision
Volume88
Early online date14 Nov 2019
DOIs
Publication statusPublished - 30 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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