Endowment Effects in Contests
- Curtis Price
- Roman Sheremeta
Economics Letters, vol. 111, pp. 217-219, 2011
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.