Potential, Prizes and Performance: Testing Tournament Theory with Professional Tennis Data
AbstractThis paper tests two hypotheses from the theory of elimination tournaments: (i) that uneven tournaments, where the contestants are ex ante heterogeneous, entail lower effort exertion; this is a prediction from agency theory that has not been tested empirically before; and (ii) whether incentives set through prizes matter for effort exertion; this assumption underlies any agency theory about elimination tournaments, and has been empirically tested in other contexts. The evidence obtained with data from professional tennis tournaments supports both the assumption that incentives matter, as well as the theoretical implications concerning uneven tournaments among heterogeneous contestants.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 947.
Length: 32 pages
Date of creation: Dec 2003
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Find related papers by JEL classification:
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- M12 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - Personnel Management; Executive Compensation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-01-08 (All new papers)
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