Year: 2024
Type: article
Abstract: We study the Tullock contest model with loss aversion and endogenously formed reference points. In a contest with n possibly heterogeneous players and convex effort costs, we establish sufficient conditions for a unique Nash equilibrium in pure strategies. Subsequently, we analyze the impact of loss aversion on players' spending behavior, probability of winning, and rent dissipation.
Source: Economic Inquiry
DOI: 10.1111/ecin.13251
Authors: Francesco Fallucchi, Francesco Trevisan
Institutions: University of Bergamo, Ca' Foscari University of Venice
Language: English
Field: Decision Sciences
Domain: Social Sciences
Open Access status: hybrid
Estimated APC paid: $3,400
OpenAlex ID: W4402382733