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Endogenous Entry in Contests

Economic Theory, no. 2 (2012): 435-463

Cited: 74|Views14
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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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