Herbst, Luisa; Konrad, Kai A.; Morath, Florian - In: European Economic Review 74 (2015) C, pp. 163-189
We experimentally study endogenous alliance formation and contest effort choices in a generic three-player contest. Differences in intrinsic or extrinsic incentives to expend effort cause self-selection. Weakly motivated players have an incentive to enter into an alliance and to free-ride on...