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Time on Camera: An Alternative Explanation of NASCAR Tournaments

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  • Peter A. Groothuis
  • Jana Groothuis
  • Kurt W. Rotthoff

Abstract

NASCAR’s reward structure for rank order tournaments has been considered the exception to the rule in tournament theory due to the linear payout structure. We suggest that the rewards for drivers are nonlinear when you take into consideration the value of sponsorship time on camera and sponsor mentions during a race on TV. Given the importance of corporate sponsorship in NASCAR, we suggest that performance in a race provides additional benefits that are not captured in traditional tournament payments. Key Words:

Suggested Citation

  • Peter A. Groothuis & Jana Groothuis & Kurt W. Rotthoff, 2009. "Time on Camera: An Alternative Explanation of NASCAR Tournaments," Working Papers 09-15, Department of Economics, Appalachian State University.
  • Handle: RePEc:apl:wpaper:09-15
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    File URL: http://econ.appstate.edu/RePEc/pdf/wp0915.pdf
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    References listed on IDEAS

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    1. Robert J. Oxoby, 2009. "On The Efficiency Of Ac/Dc: Bon Scott Versus Brian Johnson," Economic Inquiry, Western Economic Association International, vol. 47(3), pages 598-602, July.
    2. David L. Dickinson & Todd McElroy, 2009. "Naturally-occurring sleep choice and time of day effects on p-beauty contest outcomes," Working Papers 09-03, Department of Economics, Appalachian State University.
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    Cited by:

    1. Frick, Bernd & Humphreys, Brad, 2011. "Prize Structure and Performance: Evidence from NASCAR," Working Papers 2011-12, University of Alberta, Department of Economics.

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