Multi-battle Contests: An Experimental Study.

We examine behavior of subjects in simultaneous and sequential multi-battle contests, where each individual battle is modeled as an all-pay auction with complete information. In simultaneous best-of-three contests, subjects are predicted to make positive bids in all three battles, but we find that s...

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Publicado en:Southern Economic Journal Vol. 84; no. 2; pp. 407 - 426
Autores principales: Mago, Shakun D., Sheremeta, Roman M.
Formato: Artículo
Publicado: Wiley-Blackwell Oct2017
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Multi-battle Contests: An Experimental Study.
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        au:
          Mago, Shakun D.
          Sheremeta, Roman M.
        affil:
          Department of Economics, Robins School of Business, University of Richmond, 28 Westhampton Way, Richmond, VA 23173, USA.
          Weatherhead School of Management, Case Western Reserve University, 11119 Bellflower Road, Cleveland, OH 44106, USA.
          Economic Science Institute, Chapman University, One University Drive, Orange, CA 92866 Received June 2016; accepted September 2016.
      su:
        Contests
        Winning & losing (Contests & competitions)
        Patents
        Prizes (Contests & competitions)
        Auctions
      sug:
        subj:
          Contests
          All Other Legal Services
          Offices of Lawyers
          Winning & losing (Contests & competitions)
          Patents
          Prizes (Contests & competitions)
          Auctions
      keyword:
        C72
        C91
        D72
        C72
        C91
        D72
      ab: We examine behavior of subjects in simultaneous and sequential multi-battle contests, where each individual battle is modeled as an all-pay auction with complete information. In simultaneous best-of-three contests, subjects are predicted to make positive bids in all three battles, but we find that subjects often make positive bids in only two battles. In sequential contests, theory predicts sizable bids in the first battle and no bids in the subsequent battles. Contrary to this prediction, subjects significantly underbid in the first battle and overbid in subsequent battles. Consequently, instead of always ending in the second battle, contests often proceed to the third battle. Finally, although the aggregate bid in simultaneous contests is similar to that in sequential contests, in both settings, subjects make higher aggregate bids than predicted. The observed behavior of subjects can be rationalized by a combination of multidimensional iterative reasoning and a nonmonetary utility of winning.
      pubtype: Academic Journal
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      src: R
    language: English
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