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Abstract

Contrary to most sports fans economists tend to view tournaments not only as a mechanism to identify the most able and most talented athlete(s) but also as an instrument to increase the athletes' effort levels by designing an adequate compensation system that takes into account the specificities of the contest under consideration. The paper proceeds in two different steps: First, it reviews the available evidence on sports contests and identifies some puzzles that have not yet been resolved in the literature (the empirical separation of selection and incentive effects and the impact of incentive pay in team settings). Second, it addresses these puzzles and offers some new evidence supporting the basic assumptions offered by economic theory. Copyright 2003, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 19 (2003)
Issue (Month): 4 (Winter)
Pages: 512-529

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Handle: RePEc:oup:oxford:v:19:y:2003:i:4:p:512-529

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Web page: http://oxrep.oupjournals.org/

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Cited by:

1. Alex Bryson & Bockerman, P. & Ilmakunnas, P., 2011. "Heterogeneous Worker Ability and Team-based Production: Evidence from Major League Baseball, 1920-2009," NIESR Discussion Papers 376, National Institute of Economic and Social Research.
   
   • Papps, Kerry L. & Bryson, Alex & Gomez, Rafael, 2011. "Heterogeneous worker ability and team-based production: Evidence from major league baseball, 1920-2009," Labour Economics, Elsevier, vol. 18(3), pages 310-319, June.
   • Alex Bryson & Papps, K.L. & Gomez, R., 2010. "Heterogeneous Worker Ability and Team-based Production: Evidence from Major League Baseball, 1920-2009," NIESR Discussion Papers 365, National Institute of Economic and Social Research.
   • Papps, Kerry L. & Bryson, Alex & Gomez, Rafael, 2010. "Heterogeneous Worker Ability and Team-Based Production: Evidence from Major League Baseball, 1920-2009," IZA Discussion Papers 5225, Institute for the Study of Labor (IZA).
   • Bryson, Alex & Gomez, Rafael & Papps, Kerry L., 2011. "Heterogeneous Worker Ability and Team-Based Production: Evidence from Major League Baseball, 1920-2009," CLSRN Working Papers clsrn_admin-2011-6, UBC Department of Economics, revised 29 Mar 2011.
   • Alex Bryson & Rafael Gomez & Kerry L. Papps, 2010. "Heterogeneous Worker Ability and Team-Based Production: Evidence from Major League Baseball, 1920-2009," CEP Discussion Papers dp1015, Centre for Economic Performance, LSE.
2. Moschini, GianCarlo, 2008. "Incentives and Outcomes in a Strategic Setting: The 3-Points-For-A-Win System in Soccer," Staff General Research Papers 12942, Iowa State University, Department of Economics.
   
   • Giancarlo Moschini, 2010. "Incentives And Outcomes In A Strategic Setting: The 3-Points-For-A-Win System In Soccer," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 65-79, 01.
3. Douglas Coate & David Goldbaum, 2004. "Skills, Purses, and Performance in Professional Golf," Working Papers Rutgers University, Newark 2004-007, Department of Economics, Rutgers University, Newark.
4. Dmitry Ryvkin & Andreas Ortmann, 2006. "Three Prominent Tournament Formats: Predictive Power and Costs," CERGE-EI Working Papers wp303, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
5. Feddersen, Arne & Humphreys, Brad & Soebbing, Brian, 2012. "Cost Incentives in European Football," Working Papers 2012-13, University of Alberta, Department of Economics.

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