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Incentives and Superstars on the LPGA Tour

Author

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  • Francisco Peschiera
  • Peter Matthews
  • Paul Sommers

Abstract

Following Ehrenberg and Bognanno (1990a, b), this paper explores the role of incentives on the 2000 LPGA Tour. Overall, it finds them to have limited effectiveness. Several possible explanations are considered, including unmeasured differences in both abilities and courses and variations in the distribution of prizes across tournaments. The existence of a “superstar effect” is also considered.

Suggested Citation

  • Francisco Peschiera & Peter Matthews & Paul Sommers, 2002. "Incentives and Superstars on the LPGA Tour," Middlebury College Working Paper Series 0221, Middlebury College, Department of Economics.
    • Handle: RePEc:mdl:mdlpap:0221
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    File URL: http://www.middlebury.edu/services/econ/repec/mdl/ancoec/0221.pdf
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    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. 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.
    3. Ronald G. Ehrenberg & Michael L. Bognanno, 1990. "The Incentive Effects of Tournaments Revisited: Evidence from the European PGA Tour," ILR Review, Cornell University, ILR School, vol. 43(3), pages 74, April.
    4. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
    5. Dixit, Avinash K, 1987. "Strategic Behavior in Contests," American Economic Review, American Economic Association, vol. 77(5), pages 891-898, December.
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    Cited by:

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    2. Bernd Frick, 2011. "Gender Differences in Competitive Orientations: Empirical Evidence from Ultramarathon Running," Journal of Sports Economics, , vol. 12(3), pages 317-340, June.
    3. Frick, Bernd, 2011. "Gender differences in competitiveness: Empirical evidence from professional distance running," Labour Economics, Elsevier, vol. 18(3), pages 389-398, June.
    4. Mixon Jr., Franklin G. & Gómez-Mejia, Luis R., 2020. "The Competitive Struggle to Win Tournaments: The Allies’ Race to Capture Adolf Hitler’s Eagle’s Nest," American Business Review, Pompea College of Business, University of New Haven, vol. 23(1), pages 3-17, May.
    5. Liam J A Lenten & Wayne Geerling & László Kónya, 2010. "A Hedonic Model of Player Wage Determination from the Indian Premier League Auction#," Working Papers 2010.04, School of Economics, La Trobe University.
    6. Keith F. Gilsdorf & Vasant A. Sukhatme, 2013. "Gender differences in responses to incentives in sports: some new results from golf," Chapters, in: Eva Marikova Leeds & Michael A. Leeds (ed.), Handbook on the Economics of Women in Sports, chapter 5, pages 92-114, Edward Elgar Publishing.
    7. Bodnaruk, Andriy & Simonov, Andrei, 2015. "Do financial experts make better investment decisions?," Journal of Financial Intermediation, Elsevier, vol. 24(4), pages 514-536.

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    More about this item

    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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