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Three-player round-robin tournaments in the lab : Lottery contests vs. all-pay auctions
Lauber, Arne; March, Christoph; Sahm, Marco (2026): Three-player round-robin tournaments in the lab : Lottery contests vs. all-pay auctions, in: Journal of behavioral and experimental economics, Amsterdam [u.a.]: Elsevier, Jg. 124, Nr. 102605, S. 1–26, doi: 10.1016/j.socec.2026.102605.
Faculty/Chair:
Author:
Title of the Journal:
Journal of behavioral and experimental economics
ISSN:
2214-8051
2214-8043
Publisher Information:
Year of publication:
2026
Volume:
124
Issue:
102605
Pages:
Language:
English
Abstract:
We conduct a laboratory experiment to compare the fairness and intensity of round-robin tournaments with three symmetric players, a single prize, and two alternative match formats. Matches are either organized as lottery contests or all-pay auctions. Contrary to theory, we find no significant differences in intensity and fairness between the two match formats. The main reason is the behavior of the player acting in the final two matches in APA-tournaments. Rather than being severely discouraged when having to compete first against the loser of the first match, subjects try to exploit a perceived negative psychological momentum in such situations. This leads them into a dissipation trap: an effort-intense, final-like last match which significantly reduces their payoffs, but also levels the playing field for the other two players and thus enhances the fairness of APA-tournaments.
Keywords: ;  ;  ;  ;  ; 
All-pay auction
Discouragement effect
Dissipation trap
Laboratory experiment
Lottery contest
Sequential round-robin tournament
Type:
Article
Activation date:
July 6, 2026
Project(s):
Versioning
Question on publication
Permalink
https://fis.uni-bamberg.de/handle/uniba/115973