Research

Endowment Effects in Contests

Authors

Published

Economics Letters, vol. 111, pp. 217-219, 2011

Website

http://ideas.repec.org/a/eee/ecolet/v111y2011i3p217-219.html

Abstract

We experimentally study overbidding in contests and find that overbidding is significantly higher when subjects are given a large per-experiment endowment rather than when the endowment is given per-period. Risk-aversion and non-monetary utility of winning can partially explain our findings.

Roman Sheremeta