Working Paper
Intention-Based Fairness Preferences in Two-Player Contests
Magnus Hoffmann, Martin Kolmar
CESifo, Munich, 2013
CESifo Working Paper No. 4104
CESifo, Munich, 2013
CESifo Working Paper No. 4104
We analyze equilibria of two-player contests where players have intention-based preferences. We find that players invest more effort compared to the case with selfish preferences and are even willing to exert effort when the monetary value of the prize converges to zero. As a consequence, overdissipation occurs if the value of the prize is sufficiently small.
CESifo Category
Public Choice
Behavioural Economics
Public Choice
Behavioural Economics
Keywords: contests, intention-based fairness preferences
JEL Classification: D030, D720, D740