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GRIND OR GAMBLE? AN EXPERIMENT ON EFFORT AND SPREAD SEEKING IN CONTESTS
- Source :
- Economic Inquiry. 58:169-183
- Publication Year :
- 2019
- Publisher :
- Wiley, 2019.
-
Abstract
- We conduct a contest experiment to study if spread seeking and effort can be managed when participants can invest in increasing both the mean and the spread of an uncertain performance variable. Subjects are treated with different prize schemes and in accordance with theory, we observe higher investments in spread for the winner-take-all scheme. Both types of investments can be controlled with a three-level prize scheme. However, the control management is imperfect and behavior is characterized by inertia. We also explore the correlation between effort and spread across subjects and find that is robustly positive.
- Subjects :
- Scheme (programming language)
Economics and Econometrics
05 social sciences
CONTEST
General Business, Management and Accounting
Microeconomics
Variable (computer science)
Grind
0502 economics and business
Economics
Imperfect
050207 economics
computer
050205 econometrics
computer.programming_language
Subjects
Details
- ISSN :
- 14657295 and 00952583
- Volume :
- 58
- Database :
- OpenAIRE
- Journal :
- Economic Inquiry
- Accession number :
- edsair.doi...........9f8bb9f1ac9d015746e36194136fd1eb