Working Paper
Asymmetric Discouragement in Asymmetric Contests
Christoph March, Marco Sahm
CESifo, Munich, 2016
CESifo Working Paper No. 6108
CESifo, Munich, 2016
CESifo Working Paper No. 6108
![](https://cesifo.org/DocImg/cesifo1_wp6108.jpg?c=1689236962)
We provide new experimental evidence which suggests an asymmetric discouragement effect in lottery contests with heterogeneous abilities. Compared to a symmetric contest, subjects invest less effort when facing a stronger opponent, but they invest the same when facing a weaker opponent. Our results can be explained by a simple model of disappointment aversion.
CESifo Category
Behavioural Economics
Public Choice
Behavioural Economics
Public Choice
Keywords: asymmetric contest, discouragement effect, disappointment aversion, laboratory experiment
JEL Classification: C720, C920, D720