Quitters Never Win: The (Adverse) Incentive Effects of Competing with Superstars
AbstractInternal competition may motivate worker effort, yet the benefits of competition may depend critically on workers’ relative abilities: large skill differences may reduce efforts. I use panel data from professional golf tournaments and find that the presence of a superstar is associated with lower performance. On average, golfers’ first-round scores are approximately 0.2 strokes worse when Tiger Woods participates relative to when Woods is absent. The overall tournament effect is 0.8 strokes. The adverse superstar effect varies with the quality of Woods’s play. There is no evidence that reduced performance is attributable to media attention intensity or risky strategy adoption.
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 Political Economy.
Volume (Year): 119 (2011)
Issue (Month): 5 ()
Pages: 982 - 1013
Contact details of provider:
Web page: http://www.journals.uchicago.edu/JPE/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Hentschel, Sandra & Muehlheusser, Gerd & Sliwka, Dirk, 2012.
"The Impact of Managerial Change on Performance: The Role of Team Heterogeneity,"
IZA Discussion Papers
6884, Institute for the Study of Labor (IZA).
- Sandra Hentschel & Gerd Mühlheusser & Dirk Sliwka, 2012. "The Impact of Managerial Change on Performance. The Role of Team Heterogeneity," CESifo Working Paper Series 3950, CESifo Group Munich.
- Mühlheußer, Gerd & Sliwka, Dirk & Hentschel, Sandra, 2013. "The Impact of Managerial Change on Performance. The Role of Team Heterogeneity," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79825, Verein für Socialpolitik / German Economic Association.
- Antecol, Heather & Eren, Ozkan & Ozbeklik, Serkan, 2013. "Peer Effects in Disadvantaged Primary Schools: Evidence from a Randomized Experiment," IZA Discussion Papers 7694, Institute for the Study of Labor (IZA).
- Tanaka, Ryuichi & Ishino, Kazutoshi, 2012. "Testing the incentive effects in tournaments with a superstar," Journal of the Japanese and International Economies, Elsevier, vol. 26(3), pages 393-404.
- Hammond, Robert G. & Zheng, Xiaoyong, 2013. "Heterogeneity in tournaments with incomplete information: An experimental analysis," International Journal of Industrial Organization, Elsevier, vol. 31(3), pages 248-260.
- Gürtler, Marc & Gürtler, Oliver, 2013. "The optimality of heterogeneous tournaments," Working Papers IF42V1, Technische Universität Braunschweig, Institute of Finance.
- Roman M. Sheremeta & William A. Masters & Timothy N. Cason, 2012. "Winner-Take-All and Proportional-Prize Contests: Theory and Experimental Results," Working Papers 12-04, Chapman University, Economic Science Institute.
- Stracke, Rudi, 2012. "Orchestrating Contests with Heterogeneous Participants," Economics Working Paper Series 1218, University of St. Gallen, School of Economics and Political Science.
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.