Favorites and underdogs: Strategic behavior in an experimental contest

Shogren, Jason F.; Baik, Kyung H.
September 1992
Public Choice;Sep1992, Vol. 74 Issue 2, p191
Academic Journal
Conflicts between favorites and underdogs are everyday phenomena. We examine their strategic behavior in an experimental contest, and find behavior partially consistent with predictions. Favorites given a first-mover advantage do overcommit effort relative to Nash. Underdogs often select the best response effort level given the favorite's move. Overall dissipation of the prize was significantly higher with the strategic commitment relative to Nash.


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