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The Distribution of Performance and Earnings in a Prize Economy

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  • Gerald W. Scully

    (University of Texas at Dallas)

Abstract

Golfer prize money is distributed by golfer performance (rank order of finish in tournaments), with payment per unit of output nonconstant. The golf economy is one of the few examples of a pure prize economy. In this article, Professional Golfers Association golfer prize money is shown to be linked to scoring average, which is normally distributed. The nonlinear prize structure is shown to be the source of the considerable inequality in prize earnings.

Suggested Citation

  • Gerald W. Scully, 2002. "The Distribution of Performance and Earnings in a Prize Economy," Journal of Sports Economics, , vol. 3(3), pages 235-245, August.
    • Handle: RePEc:sae:jospec:v:3:y:2002:i:3:p:235-245
    DOI: 10.1177/1527002502003003001
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    References listed on IDEAS

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    6. Ehrenberg, Ronald G & Bognanno, Michael L, 1990. "Do Tournaments Have Incentive Effects?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1307-1324, December.
    7. Scully, Gerald W., 1995. "The Market Structure of Sports," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226743950, September.
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    Cited by:

    1. Stephen Shmanske, 2007. "Consistency or Heroics: Skewness, Performance, and Earnings on the PGA TOUR," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 35(4), pages 463-471, December.
    2. Martina Gianecchini & Alberto Alvisi, 2015. "Late career of superstar soccer players: win, play, or gain?," "Marco Fanno" Working Papers 0192, Dipartimento di Scienze Economiche "Marco Fanno".
    3. Chmait, Nader & Robertson, Sam & Westerbeek, Hans & Eime, Rochelle & Sellitto, Carmine & Reid, Machar, 2020. "Tennis superstars: The relationship between star status and demand for tickets," Sport Management Review, Elsevier, vol. 23(2), pages 330-347.
    4. 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.
    5. Thomas A. Rhoads, 2007. "Labor Supply on the PGA TOUR," Journal of Sports Economics, , vol. 8(1), pages 83-98, February.
    6. Scott J. Callan & Janet M. Thomas, 2007. "Modeling the Determinants of a Professional Golfer's Tournament Earnings," Journal of Sports Economics, , vol. 8(4), pages 394-411, August.
    7. Stephen Shmanske, 2008. "Skills, Performance, and Earnings in the Tournament Compensation Model," Journal of Sports Economics, , vol. 9(6), pages 644-662, December.
    8. Stephen Shmanske, 2013. "Gender and skill convergence in professional golf," Chapters, in: Eva Marikova Leeds & Michael A. Leeds (ed.), Handbook on the Economics of Women in Sports, chapter 4, pages 73-91, Edward Elgar Publishing.

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