IDEAS home Printed from https://ideas.repec.org/a/oup/oxecpp/v71y2019i4p979-995..html

The effects of bigger rewards in individual tournaments on efforts and risk taking: evidence from chess

Author

Listed:
  • Rasyad A Parinduri
  • Yoong Hon Lee
  • Kung Ming Tiong

Abstract

We examine the effects of bigger rewards in individual dynamic tournaments on efforts and risk taking using the three-point rule in chess. Most chess tournaments use the standard rule while some tournaments use the Bilbao rule, which is identical to the three-point rule in soccer: We observe the same pairs of chess players playing under both rules, a research design that fits fixed-effect models. We find the Bilbao rule makes games 33% more decisive, mostly to white players’ advantage, who win 50% more games. We identify two mechanisms why the Bilbao rule works: It encourages players to play longer and discourages them from using drawish openings. These results suggest incentive schemes that provide bigger rewards for better performances work in individual multi-stage tournaments in which efforts and financial rewards are directly linked, and in which strategic interactions among teammates and with competitors are less complex.

Suggested Citation

  • Rasyad A Parinduri & Yoong Hon Lee & Kung Ming Tiong, 2019. "The effects of bigger rewards in individual tournaments on efforts and risk taking: evidence from chess," Oxford Economic Papers, Oxford University Press, vol. 71(4), pages 979-995.
    • Handle: RePEc:oup:oxecpp:v:71:y:2019:i:4:p:979-995.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/oep/gpy052
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    More about this item

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • M52 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Compensation and Compensation Methods and Their Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:oxecpp:v:71:y:2019:i:4:p:979-995.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/oep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.