Intention-based fairness preferences in two-player contests

We analyze equilibria of two-player contests where players have intention-based preferences. We find that players invest more effort compared to the case with selfish preferences and are even willing to exert effort when the monetary value of the prize converges to zero. As a consequence, overdissipation occurs if the value of the prize is sufficiently small.

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Year of publication:	2013
Authors:	Hoffmann, Magnus ; Kolmar, Martin
Publisher:	Munich : Center for Economic Studies and ifo Institute (CESifo)
Subject:	Wettbewerb \| Spieltheorie \| Gerechtigkeit \| Präferenztheorie \| Theorie \| contests \| intention-based fairness preferences

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Series:	CESifo Working Paper ; 4104
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	736090703 [GVK] hdl:10419/69540 [Handle]
Classification:	D03 - Behavioral Economics; Underlying Principles ; D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legistures, and Voting Behavior ; D74 - Conflict; Conflict Resolution; Alliances
Source:	EconStor

Persistent link: https://www.econbiz.de/10010291500