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Heterogeneous Contestants and Effort Provision in Tournaments - an Empirical Investigation with Professional Sports Data

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  • Berger, Johannes
  • Nieken, Petra

Abstract

We empirically investigate if tournaments between heterogeneous contestants are less intense. To test our hypotheses we use professional sports data from the TOYOTA Handball-Bundesliga, the major handball league in Germany. Using either differences in betting odds or rankings to measure ability differences, our results support standard tournament theory as we find a highly significant negative impact of the matchup's heterogeneity on joint teame efforts. However, further analysis shows that this overall decrease in efforts is almost entirely driven by the reaction of the ex-ante favorite team.

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Bibliographic Info

Paper provided by Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich in its series Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems with number 325.

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Date of creation: Jul 2010
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Handle: RePEc:trf:wpaper:325

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Related research

Keywords: tournament; heterogeneity; incentives; sportseconomics;

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Cited by:
  1. 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).

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