We analyze equilibria of two-player contests where players have intention-based preferences. We find that players invest more effort compared to the case with selfish preferences and are even willing to exert effort when the monetary value of the prize converges to zero. As a consequence,...

We analyze equilibria of two-player contests where players have intention-based preferences. We find that players invest more effort compared to the case with selfish preferences and are even willing to exert effort when the monetary value of the prize converges to zero. As a consequence,...

Outcomes observed in laboratory experiments on contests are often not consistent with the results expected by theoretical models, with phenomena that frequently occur like overbidding or persisting oscillations in strategic choices. Several explanations have been suggested to understand such...