Work

Loss Aversion and the Tullock Paradox

Year: 2003

Type: article

Abstract: We show that the presence of loss aversion on the part of participants in a Tullock imperfectly discriminating contest will significantly reduce the proportion of the rent dissipated in the form of resources used up in the competition for that rent. We also suggest a simple experiment that can reveal whether contestants are, indeed, loss averse.

Authors: Richard Cornes, Roger Hartley

Institutions: Australian National University, Ifo Institute for Economic Research

Language: English

Topic: Experimental Behavioral Economics Studies

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W1510181263

FWCI: 2.166

Cites: 15

Cited by: 12

Related to: 10