Kendall, R;
(2021)
Sequential competitions with a middle-mover advantage.
Journal of Behavioral and Experimental Economics
, 91
, Article 101667. 10.1016/j.socec.2021.101667.
Preview |
Text
MiddleMoverPaper_Jan_2020.pdf - Accepted Version Download (2MB) | Preview |
Abstract
This paper investigates the incentives that drive advantageous positions in sequential competitions. Sequential competitions have been shown to have either a first- or last-mover advantage. In contrast, this paper illustrates a general sequential-move competition where the first- and last-moving agents are the least profitable while the middle-moving agent is guaranteed to earn the highest possible payoff. This result provide for a new intuition about the underlying incentives in a sequential decision structure which are tested using a multiple-round laboratory experiment. Experimental data aggregated across all rounds support the prediction of a first- and last-mover disadvantage along with a middle-mover advantage. Furthermore, the data suggest that subjects learn as they gain experience with this competition. In this manner, a sequential decision structure with inexperienced agents will benefit the first- and middle-moving agents, whereas the same decision structure with experienced agents will only benefit the middle-moving agents.
| Type: | Article |
|---|---|
| Title: | Sequential competitions with a middle-mover advantage |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.socec.2021.101667 |
| Publisher version: | https://doi.org/10.1016/j.socec.2021.101667 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher's terms and conditions. |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10128601 |
Archive Staff Only
 |
View Item |
