@techreport{6fbe265156a243ba84b208570963499b,
title = "Inequality and Competitive Effort: The Roles of Asymmetric Resources, Opportunity and Outcomes",
abstract = "We study the effects of different sources of inequality in a commonplace economic interaction: competition. We investigate how individuals react to different types of inequality in experimental two-player Tullock contests where contestants expend resources to win a prize. We study three different sources of inequality: resources, abilities and possible outcomes. We find that overall competitive effort is greater in the presence of inequality in abilities than other inequalities. Unlike other forms, inequality in abilities elicits a very aggressive reaction from disadvantaged players relative to their advantaged opponents. The Quantal Response Equilibrium (QRE) suggests that financial incentives are less salient in the presence of a biased contest procedure.",
keywords = "Quantal Response Equilibrium, contest, experiment, inequality, inequity, rent seeking",
author = "Francesco Fallucchi and Abhijit Ramalingam",
year = "2017",
language = "English",
series = "Working Papers",
publisher = "LISER",
number = "2017-12",
address = "Luxembourg",
type = "WorkingPaper",
institution = "LISER",
}