Chowdhury, Subhasish M.; Sheremeta, Roman M.; Turocy, … - In: Games and Economic Behavior 87 (2014) C, pp. 224-238
We study experimentally the effects of cost structure and prize allocation rules on the performance of rent-seeking contests. Most previous studies use a lottery prize rule and linear cost, and find both overbidding relative to the Nash equilibrium prediction and significant variation of...