Best-of-three contest experiments: Strategic versus psychological momentumShakun Mago, Roman Sheremeta () and Andrew Yates International Journal of Industrial Organization, 2013, vol. 31, issue 3, 287-296 Abstract: We conduct an experimental analysis of a best-of-three Tullock 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 the 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., a momentum generated due to strategic incentives inherent in the contest. We do not find evidence for ‘psychological momentum’, i.e., a momentum which emerges when winning affects players' confidence. Similar to the previous studies of contests, we find significantly higher efforts than predicted and strong heterogeneity in effort between the subjects. Keywords: Best-of-three contest; Experiments; Strategic momentum; Psychological momentum (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:31:y:2013:i:3:p:287-296 DOI: 10.1016/j.ijindorg.2012.11.006 Access Statistics for this article International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal More articles in International Journal of Industrial Organization from Elsevier |
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