Heterogeneity in rent-seeking contests with multiple stages: Theory and experimental evidence

This paper investigates how heterogeneity in contestants� investment costs affects the competition intensity a dynamic elimination contest. Theory predicts that absolute level of has no effect on homogeneous interactions. Relative cost differences heterogeneous interactions, however, reduce equilibrium expenditures. Evidence from lab experiments for treatments with participants is qualitatively line theoretical prediction. The expenditures positive rather than negative, all treatments.