Price, Curtis R.; Sheremeta, Roman M. - Economic Science Institute (ESI), Argyros School of … - 2009
We design an experiment to test if the manner in which subjects receive the endowment has any bearing on the amount of … overbidding in contests. We find that overbidding is significantly higher when subjects are given a large per-experiment endowment … rather than when the endowment is given per-period. Risk-aversion and non-monetary utility of winning play important roles in …