J 2024

Contest and resource allocation: An experimental analysis of entitlement and self-selection effects

ČELLÁROVÁ, Katarína and Rostislav STANĚK

Basic information

Original name

Contest and resource allocation: An experimental analysis of entitlement and self-selection effects

Edition

EUROPEAN JOURNAL OF POLITICAL ECONOMY, NEW YORK, ELSEVIER SCIENCE INC, 2024, 0176-2680

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Country of publisher

Netherlands

Confidentiality degree

není předmětem státního či obchodního tajemství

Impact factor

Impact factor: 2.000 in 2022

Organization unit

Faculty of Economics and Administration

UT WoS

001220212100001

Keywords in English

Entitlement effect; Self-selection; Contest; Experiment

Tags

International impact, Reviewed
Změněno: 1/7/2024 13:11, Mgr. Alžběta Karolyiová

Abstract

V originále

Leaders who decide the allocation of resources are often chosen through contests. Due to imperfect monitoring, they often decide to allocate resources to themselves at the expense of others. This paper investigates how being selected in a contest affects such allocation through two channels: entitlement and self-selection effects. In our experiment, two players compete for the right to allocate resources between themself and a third, uninvolved player. We identify the entitlement effects by comparing the choices of participants who participated in the contest with those who were chosen randomly. Self-selection effect is identified by comparing the choices of winners and losers between treatments via a difference-in-difference approach. We find a significant effect of entitlement; people participating in the contest transfer fewer resources to the third player compared to those who did not participate. Further, we find no evidence that the people with specific distributional preferences self-select into the leaders’ role. Our findings suggest that the primary reason leaders allocate resources to themselves is their involvement in the contest rather than being a result of self-selection.

Links

GA21-25331S, research and development project
Name: Konflikty jako nedorozumění: tři experimentální studie
Investor: Czech Science Foundation