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Deterrence in Rank-Order Tournaments

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Abstract

In a tournament, competitors may engage in undesirable activities, or 'cheating', in order to gain an advantage. Examples of such activities include the taking of steroids, plagiarism, and 'creative accounting'. This paper considers the problem of deterrence of these activities and finds that there exist special considerations that are not present in a traditional model of law enforcement. For example, an agent's returns to cheating depend on the cheating decisions of others, and so there may exist multiple equilibria. The problem of multiple equilibria can be reduced when the first-place prize is awarded to the person that performed best without cheating. Moreover, we show that re-awarding prizes reduces the amount of monitoring required to ensure compliance. We also demonstrate that monitoring costs can be further reduced by monitoring the winner of the tournament more than the loser, and by manipulating prizes, including through the introduction of prizes for non-winners.

Suggested Citation

  • Philip A. Curry & Steeve Mongrain, 2007. "Deterrence in Rank-Order Tournaments," Discussion Papers dp07-04, Department of Economics, Simon Fraser University.
  • Handle: RePEc:sfu:sfudps:dp07-04
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    References listed on IDEAS

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    Cited by:

    1. Müller, Daniel, 2013. "The Doping Threshold in Sport Contests," Working papers 2013/05, Faculty of Business and Economics - University of Basel.
    2. repec:bla:ecinqu:v:55:y:2017:i:2:p:1145-1160 is not listed on IDEAS
    3. Gill, David & Prowse, Victoria & Vlassopoulos, Michael, 2013. "Cheating in the workplace: An experimental study of the impact of bonuses and productivity," Journal of Economic Behavior & Organization, Elsevier, vol. 96(C), pages 120-134.
    4. Volker Robeck, 2014. "Professional Cycling and the Fight against Doping," MAGKS Papers on Economics 201456, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. Nicolas Eber, 2012. "Doping and Anti-doping Measures," Chapters,in: International Handbook on the Economics of Mega Sporting Events, chapter 12 Edward Elgar Publishing.
    6. Subhasish Chowdhury & Oliver Gürtler, 2015. "Sabotage in contests: a survey," Public Choice, Springer, vol. 164(1), pages 135-155, July.
    7. Sebastian Bervoets & Bruno Decreuse & Mathieu Faure, 2014. "A Renewed Analysis of Cheating in Contests: Theory and Evidence from Recovery Doping," AMSE Working Papers 1441, Aix-Marseille School of Economics, Marseille, France, revised Jun 2015.
    8. Mürüvvet Büyükboyacı, 2016. "A Designer'S Choice Between Single-Prize And Parallel Tournaments," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1774-1789, October.
    9. Nicolas Eber, 2011. "Fair play in contests," Journal of Economics, Springer, vol. 103(3), pages 253-270, July.
    10. Qin Wu & Raph C-Bayer & Liam Lenten, 2016. "A Comparison of Anti-Doping Measures in Sporting Contests," School of Economics Working Papers 2016-11, University of Adelaide, School of Economics.
    11. Faravelli, Marco & Friesen, Lana & Gangadharan, Lata, 2015. "Selection, tournaments, and dishonesty," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 160-175.
    12. Paul O’Sullivan, 2015. "Asymmetric Doping Effects and Sanctions in Sporting Contests," Economics, Finance and Accounting Department Working Paper Series n262-15.pdf, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.

    More about this item

    Keywords

    Enforcement; Cheating; Tournament;

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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