Losing to Win: Tournament Incentives in the National Basketball Association
AbstractThe focus of tournament models has been rank-order compensation schemes whereby participants receive higher payments for higher relative performance, either incrementally or winner-takes-all. Our research focuses on a unique tournament that offers rewards for both winning and losing, specifically the National Basketball Association's regularly scheduled season of games. We examine three NBA seasons to determine whether team performance responded to changes in the underlying tournament incentives provided by the NBA's introduction and restructuring of the lottery system to determine draft order. Our results yield strong evidence that NBA teams are more likely to lose when incentives to lose are present.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by University of Chicago Press in its journal Journal of Labor Economics.
Volume (Year): 20 (2002)
Issue (Month): 1 (January)
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JOLE/
You can help add them by filling out this form.
Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- The NFL Salary Cap and an Incentive to Not Win
by Phil Miller in Market Power on 2008-04-07 15:22:00
- Australian Rules Football and Perverse Incentives
by Phil Miller in Market Power on 2013-11-19 20:08:34
- John Jasina & Kurt Rotthoff, 2012. "A model of promotion and relegation in league sports," Journal of Economics and Finance, Springer, vol. 36(2), pages 303-318, April.
- Helmut M. Dietl & Markus Lang & Stephan Werner, 2010.
"Corruption in Professional Sumo: An Update on the Study of Duggan and Levitt,"
Journal of Sports Economics,
, vol. 11(4), pages 383-396, August.
- Helmut Dietl & Markus Lang & Stephan Werner, 2008. "Corruption in Professional Sumo: An Update on the Study of Duggan and Levitt," Working Papers 0085, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jun 2009.
- Mueller-Langer, Frank & Andreoli-Versbach, Patrick, 2013. "Leading-effect vs. Risk-taking in Dynamic Tournaments: Evidence from a Real-life Randomized Experiment," Discussion Papers in Economics 15452, University of Munich, Department of Economics.
- Dmitry Ryvkin, 2011.
"Fatigue in Dynamic Tournaments,"
Journal of Economics & Management Strategy,
Wiley Blackwell, vol. 20(4), pages 1011-1041, December.
- Feddersen, Arne & Humphreys, Brad & Soebbing, Brian, 2012. "Cost Incentives in European Football," Working Papers 2012-13, University of Alberta, Department of Economics.
- Stefan Szymanski & Tommaso M. Valletti, 2005. "Promotion and Relegation in Sporting Contests," Rivista di Politica Economica, SIPI Spa, vol. 95(3), pages 3-39, May-June.
- Lionel Page & Katie Page, 2009. "Stakes and Motivation in Tournaments: Playing When There is Nothing to Play for but Pride," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 39(3), pages 445-464, December.
- Grund, Christian & Höcker, Jan & Zimmermann, Stefan, 2010. "Risk Taking Behavior in Tournaments: Evidence from the NBA," IZA Discussion Papers 4812, Institute for the Study of Labor (IZA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Journals Division).
If references are entirely missing, you can add them using this form.