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Expert opinion and compensation: evidence from a musical competition

Author

Listed:
  • GINSBURGH, Victor
  • VAN OURS, Jan C.

Abstract

Pianists who achieve high scores in the Queen Elizabeth musical competition are rewarded by subsequent success. This is not surprising in itself, but it is not immediately clear whether this is caused by the score or because those who have high scores are better pianists. Data on eleven consecutive competitions make it possible to distinguish between the two explanations, since an unexpected situation allows us to use an instrumental variable (the randomly assigned order in which musicians appear at the competition), uncorrelated with ability, but correlated with the results of the competition.
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Suggested Citation

  • GINSBURGH, Victor & VAN OURS, Jan C., 2003. "Expert opinion and compensation: evidence from a musical competition," LIDAM Reprints CORE 1617, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:1617
    Note: In : The American Economic Review, 93(1), 289-296, 2003
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    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • Z10 - Other Special Topics - - Cultural Economics - - - General

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