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This paper studies an economic contest with two participants, who are overconfident in their own relative abilities. We examine two different sources of overconfidence, overestimation of one's own ability and underestimation of the rival's ability, and compare the behavioral consequences of each...
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We report an experiment designed to evaluate the impact of loss aversion on rent-seeking contests. We find, as …
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Group contests are ubiquitous. Some examples include warfare between countries, competition between political parties … these theoretical predictions. Almost all studies of behavior in group contests find significant over-expenditure of effort …, studies show that there are effective mechanisms that can promote within-group cooperation and conflict resolution mechanisms …
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