That's the Ticket: Explicit Lottery Randomisation and Learning in Tullock Contests

32 Pages Posted: 21 Mar 2017

See all articles by Subhasish M. Chowdhury

Subhasish M. Chowdhury

University of Bath - Department of Economics

Anwesha Mukherjee

University of East Anglia (UEA)

Theodore Turocy

University of East Anglia (UEA)

Date Written: February 8, 2017

Abstract

We experimentally contrast mathematical versus operational explanations of Tullock lottery contests. We contrast a protocol explaining the contest in terms of probability of winning, with an operational approach that carries out the random component of the contest as an explicit lottery each period. Initial expenditure levels are significantly lower when using the operational approach. In addition, using the operational approach, groups far from equilibrium in a given period move more rapidly towards approximate mutual best response. We find these results in sessions conducted in the UK and in the US. The implications that can be drawn from experiments on contest games therefore depend on the approach used to present the game to the players.

Keywords: lottery contest, learning, framing, experiment

JEL Classification: C72, C91, D72, D83

Suggested Citation

Chowdhury, Subhasish M. and Mukherjee, Anwesha and Turocy, Theodore, That's the Ticket: Explicit Lottery Randomisation and Learning in Tullock Contests (February 8, 2017). Available at SSRN: https://ssrn.com/abstract=2937826 or http://dx.doi.org/10.2139/ssrn.2937826

Subhasish M. Chowdhury

University of Bath - Department of Economics ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

HOME PAGE: http://https://sites.google.com/site/subhasishmc/

Anwesha Mukherjee

University of East Anglia (UEA) ( email )

Norwich Research Park
Norwich, Norfolk NR4 7TJ
United Kingdom

Theodore Turocy (Contact Author)

University of East Anglia (UEA) ( email )

Norwich Research Park
Norwich, Norfolk NR4 7TJ
United Kingdom

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