Loss aversion and rent-seeking: An experimental study

We report an experiment designed to evaluate the impact of loss aversion on rent-seeking contests. We find, as theoretically predicted, a negative relationship between rent-seeking expenditures and loss aversion. However, for any degree of loss aversion, levels of rent-seeking expenditure are higher than predicted. Moreover, we find that the effect of loss aversion becomes weaker with repetition of the contest.

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Year of publication:	2008
Authors:	Kong, Xiaojing
Publisher:	Nottingham : The University of Nottingham, Centre for Decision Research and Experimental Economics (CeDEx)
Subject:	Rent Seeking \| Verlust \| Risikoaversion \| Verhaltensökonomik \| Test

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Series:	CeDEx Discussion Paper Series ; 2008-13
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	584348819 [GVK] hdl:10419/49664 [Handle]
Source:	EconStor

Persistent link: https://www.econbiz.de/10010277476