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The burden of glory: Competing for nonmonetary incentives in rank‐order tournaments

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  • Raja Kali
  • David Pastoriza
  • Jean‐François Plante

Abstract

In an environment in which elite, highly paid professionals compete for nonmonetary rewards, we find evidence of underperformance. Our analysis suggests that choking under pressure from high‐stakes nonmonetary rewards is behind the underperformance. This implies that high stakes nonmonetary rewards can create meaningful pressure on individuals and lead to worse performance, a distinct issue that has yet to be adequately examined. These findings come from an examination of the behavior of top U.S. golfers competing to earn a place on the U.S. Ryder Cup team via their performance in PGA Tour tournaments with differing allocations of Ryder Cup qualifying points.

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  • Raja Kali & David Pastoriza & Jean‐François Plante, 2018. "The burden of glory: Competing for nonmonetary incentives in rank‐order tournaments," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 27(1), pages 102-118, March.
    • Handle: RePEc:bla:jemstr:v:27:y:2018:i:1:p:102-118
    DOI: 10.1111/jems.12233
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    Cited by:

    1. Daniel C. Hickman & Craig Kerr & Neil Metz, 2019. "Rank and Performance in Dynamic Tournaments: Evidence From the PGA Tour," Journal of Sports Economics, , vol. 20(4), pages 509-534, May.
    2. Xu, Minbo & Wang, Oliver, 2023. "Psychological pressure and performance in competitive environments: The first-hole effect in youth golf," Economics Letters, Elsevier, vol. 224(C).
    3. Miller, Danny & Pastoriza, David & Plante, Jean-François, 2019. "Conditioning competitive risk: Competitors’ rank proximity and relative ability," Journal of Economic Psychology, Elsevier, vol. 73(C), pages 161-175.
    4. David Pastoriza & Jean-François Plante & Nadjib Lakhlef, 2021. "Are Foreigners at Disadvantage in a Global Labor Market?," Journal of Sports Economics, , vol. 22(6), pages 615-638, August.

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