Universität zu Köln

Fallucchi, Francesco ORCID: 0000-0001-5502-4358, Ramalingam, Abhijit, Rockenbach, Bettina ORCID: 0000-0003-2624-1964 and Waligora, Marcin ORCID: 0000-0001-7458-1758 (2021). Inequality and competitive effort: The roles of asymmetric resources, opportunity and outcomes. J. Econ. Behav. Organ., 185. S. 81 - 97. AMSTERDAM: ELSEVIER. ISSN 1879-1751

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Abstract

We investigate how individuals react to different types of asymmetries in experimental two-player Tullock contests where contestants expend resources to win a prize. We compare the effects of three different sources of asymmetry: resources, abilities and possible outcomes. We find that overall competitive effort is greatest in the presence of asymmetric abilities. Unlike other forms, asymmetry in abilities elicits a very aggressive reaction from disadvantaged players relative to their advantaged opponents. The Quantal Response Equilibrium (QRE) suggests that financial incentives are less salient in the presence of a biased contest procedure. We explore asymmetric abilities further in a second study that varies the degree of asymmetry. We find that advantaged players exploit their privileged position while disadvantaged players exhibit volatile behavior, either giving up or matching their opponents. We conclude that a desire to win drives behavior in this asymmetric setting. ? 2021 Elsevier B.V. All rights reserved.

Item Type:	Journal Article
Creators:	Creators Email ORCID ORCID Put Code Fallucchi, Francesco UNSPECIFIED orcid.org/0000-0001-5502-4358 UNSPECIFIED Ramalingam, Abhijit UNSPECIFIED UNSPECIFIED UNSPECIFIED Rockenbach, Bettina UNSPECIFIED orcid.org/0000-0003-2624-1964 UNSPECIFIED Waligora, Marcin UNSPECIFIED orcid.org/0000-0001-7458-1758 UNSPECIFIED
URN:	urn:nbn:de:hbz:38-589008
DOI:	10.1016/j.jebo.2021.02.013
Journal or Publication Title:	J. Econ. Behav. Organ.
Volume:	185
Page Range:	S. 81 - 97
Date:	2021
Publisher:	ELSEVIER
Place of Publication:	AMSTERDAM
ISSN:	1879-1751
Language:	English
Faculty:	Faculty of Management, Economy and Social Sciences
Divisions:	Center of Excellence C-SEB Faculty of Management, Economics and Social Sciences > Economics > Microeconomics, Institutions and markets > Professorship for Experimental and Behavioral Economics Faculty of Management, Economics and Social Sciences > Economics > Microeconomics, Institutions and markets > Reinhard Selten Institute
Subjects:	Economics
Uncontrolled Keywords:	Keywords Language RENT-SEEKING; GROUP-SIZE; CONTESTS; TOURNAMENTS; CONFLICT Multiple languages Economics Multiple languages
Refereed:	Yes
URI:	http://kups.ub.uni-koeln.de/id/eprint/58900