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Rent-seeking and competitive preferences

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  • Cox, Caleb A.

Abstract

In this experiment, I examine the extent to which competitive social preferences can explain over-bidding in rent-seeking contests. The Human treatment is a standard two-player contest. In the Robot treatment, a single player bids against a computerized player, eliminating potential social preference motives. The results show no difference in bids between treatments at the aggregate level. Further analysis shows evidence of heterogeneous treatment effects between impulsive and reflective subjects. Moreover, impulsive subjects are more likely than reflective subjects to deviate qualitatively from the shape of the theoretical best response function.

Suggested Citation

  • Cox, Caleb A., 2017. "Rent-seeking and competitive preferences," Journal of Economic Psychology, Elsevier, vol. 63(C), pages 102-116.
    • Handle: RePEc:eee:joepsy:v:63:y:2017:i:c:p:102-116
    DOI: 10.1016/j.joep.2017.02.002
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Hoffmann, Magnus & Kolmar, Martin, 2017. "Distributional preferences in probabilistic and share contests," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 120-139.
    2. Bhaumik, Sumon & Chowdhury, Subhasish M. & Dimova, Ralitza & Fromell, Hanna, 2023. "Identity, Communication, and Conflict: An Experiment," GLO Discussion Paper Series 1255, Global Labor Organization (GLO).
    3. Nicolas Houy & Jean-Philippe Nicolaï & Marie Claire Villeval, 2020. "Always doing your best? Effort and performance in dynamic settings," Theory and Decision, Springer, vol. 89(3), pages 249-286, October.
    4. David Bruner & Caleb Cox & David M. McEvoy & Brock Stoddard, 2022. "Strategic thinking in contests," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 942-973, June.
    5. Subhasish M. Chowdhury & Anwesha Mukherjee & Roman M. Sheremeta, 2021. "In-group versus Out-group Preferences in Intergroup Conflict: An Experiment," Working Papers 21-02, Chapman University, Economic Science Institute.
    6. Christoph March, 2019. "The Behavioral Economics of Artificial Intelligence: Lessons from Experiments with Computer Players," CESifo Working Paper Series 7926, CESifo.
    7. Jung, SeEun & Vranceanu, Radu, 2019. "Competitive compensation and subjective well-being: The effect of culture and gender," Journal of Economic Psychology, Elsevier, vol. 70(C), pages 90-108.
    8. Masiliūnas, Aidas, 2023. "Learning in rent-seeking contests with payoff risk and foregone payoff information," Games and Economic Behavior, Elsevier, vol. 140(C), pages 50-72.
    9. March, Christoph, 2021. "Strategic interactions between humans and artificial intelligence: Lessons from experiments with computer players," Journal of Economic Psychology, Elsevier, vol. 87(C).

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    More about this item

    Keywords

    Rent-seeking; Contests; Laboratory experiments; Game theory; Social preferences;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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