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Pushing the bad away: reverse Tullock contests

Author

Listed:
  • Bettina Rockenbach

    (University of Cologne)

  • Sebastian Schneiders

    (University of Cologne)

  • Marcin Waligora

    (Frontier Economics Ltd.)

Abstract

The literature on rent-seeking primarily focuses on contests for achieving gains, although contests for avoiding losses are also omnipresent. Examples for such ‘reverse’ contests are activities to prevent the close-down of a local school or the construction of a waste disposal close-by. While under standard preferences, investments in ‘reverse’ and ‘conventional’ contests should not be different, loss aversion predicts contests for avoiding losses to be fiercer than conventional ones. In our experimental data, the difference in investments between conventional and reverse Tullock contests is small and statistically insignificant. We discuss several explanations for this remarkable finding.

Suggested Citation

  • Bettina Rockenbach & Sebastian Schneiders & Marcin Waligora, 2018. "Pushing the bad away: reverse Tullock contests," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 4(1), pages 73-85, July.
    • Handle: RePEc:spr:jesaex:v:4:y:2018:i:1:d:10.1007_s40881-018-0052-7
    DOI: 10.1007/s40881-018-0052-7
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    More about this item

    Keywords

    Rent-seeking; Contest; Loss aversion; Experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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