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becoming negative, or vice versa. We report the results of a human-subjects experiment designed to test for two types of loss … avoidance: certain-loss avoidance (avoiding a strategy leading to a sure loss, in favor of an alternative that might lead to a … gain) and possible-loss avoidance (avoiding a strategy leading to a possible loss, in favor of an alternative that leads to …
Persistent link: https://www.econbiz.de/10014218794
This paper investigates whether contest schemes induce excessive risk-taking by implementing in the laboratory a novel stopping task based on the contest model of Seel and Strack (2013). In this stylized setting, managers who face contest payoffs have an incentive to delay halting projects with...
Persistent link: https://www.econbiz.de/10012826390
undesirable gambling activities if times are moderately bad. Possible applications of the model include contests for status, job …
Persistent link: https://www.econbiz.de/10014204101
We investigate the incentive consequences of introducing the possibility of a draw into a lottery contest. Equilibrium total effort unambiguously decreases when draws are introduced, whereas the equilibrium expected winner's effort increases when the contestants' valuations of the prize become...
Persistent link: https://www.econbiz.de/10012948540
This paper experimentally compares the performance of four simultaneous lottery contests: a grand contest, two multiple prize settings (equal and unequal prizes), and a contest which consists of two subcontests. Consistent with the theory, the grand contest generates the highest effort levels...
Persistent link: https://www.econbiz.de/10013158286
In this paper, we present a model of finitely repeated games in which players can strategically make use of objective ambiguity. In each round of a finite rep- etition of a finite stage-game, in addition to the classic pure and mixed actions, players can employ objectively ambiguous actions by...
Persistent link: https://www.econbiz.de/10011891363
Starting with a simple economic model of the value of civil litigation from each side's perspective, this paper analyses a wide range of potential litigation cost strategies, settlement offers and negotiations, together with relevant applications and insights from game theory. Specific issues...
Persistent link: https://www.econbiz.de/10014026078
We consider a two-player contest model in which breakthroughs arrive according to privately observed Poisson processes. Each player's process continues as long as she exerts costly effort. The player who collects most breakthroughs until a predetermined deadline wins a prize.We derive Nash...
Persistent link: https://www.econbiz.de/10013069113
In this paper the extended model of Minority game (MG), incorporating variable number of agents and therefore called Grand Canonical, is used for prediction. We proved that the best MG-based predictor is constituted by a tremendously degenerated system, when only one agent is involved. The...
Persistent link: https://www.econbiz.de/10013059395
Generalization of the minority game to more than one market is considered. At each time step every agent chooses one of its strategies and acts on the market related to this strategy. If the payoff function allows for strong fluctuation of utility then market occupancies become inhomogeneous...
Persistent link: https://www.econbiz.de/10013059416