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Endogenous Entry in Contests
Economic Theory, no. 2 (2012): 435-463
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Abstract
We report the results of laboratory experiments on rent-seeking contests with endogenous participation. Theory predicts that
(a) contest entry and rent-seeking expenditures increase with the size of the prize and (b) earnings are equalized between
the contest and the outside option. While the directional predictions offered in (a) are s...More
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