In this paper, I study the impact of asymmetric loss constraints on risk-taking behavior in contests. More precisely, contestants have different maximal loss restrictions in the contest model of Seel and Strack (2013), where players choose when to stop a privately observed Brownian motion and...

How do large-scale participants in parimutuel wagering events affect the house and ordinary bettors? A standard narrative suggests that they may temporarily benefit the former at the expense of the latter. To approach this problem, we begin by developing a model based on the theory of large...