The Runner-Up Effect
---- Acknowledgments ----
We thank Emmerich Davies, Sue Jia, Minkwang Jang, Cinthia Konichi, Maria Gao, Michelle Han, Susannah Scanlan, Mengshu Shen, Jason Tian, and Iris Yao for research assistance. This paper benefitted from suggestions by Daron Acemoglu, Eduardo Azevedo, Laurent Bouton, Robin Burgess, Micael Castanheira, David Lee, Marc Meredith, Joana Naritomi, Sri Navagarapu, Francesco Trebbi, Shing-Yi Wang, and seminar participants at Princeton, Wharton, Yale, Columbia, ISB, NYU, UCLA, CIFAR, PECO, and Warwick. We acknowledge funding from Wharton Global Initiatives, the Wharton Dean's Research Fund, the Center for the Advanced Study of India (U Penn), the Canadian Institute for Advanced Research, and the Program in Latin American Studies (Princeton). The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.