2015-07-01
The Effects of Prize Spread and Noise in Elimination Tournaments: A Natural Field Experiment
Publication
Publication
Journal of Labor Economics , Volume 33 - Issue 3 p. 521- 569
We conduct a natural field experiment in a retail chain to test predictions of tournament theory regarding prize spread and noise. A random subset of the 208 stores participates in two-stage elimination tournaments. Tournaments differ in the distribution of prize money across winners of the first and second rounds of the tournament. As predicted, we find that a more convex prize spread increases second-round performance at the expense of first-round performance, although the magnitude of these effects is small. Moreover, the treatment effect is larger for stores with more stable past performance.
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doi.org/10.1086/679670, hdl.handle.net/1765/78382 | |
ERIM Top-Core Articles | |
Journal of Labor Economics | |
Organisation | Erasmus School of Economics |
Delfgaauw, J., Dur, R., Non, A., & Verbeke, W. (2015). The Effects of Prize Spread and Noise in Elimination Tournaments: A Natural Field Experiment. Journal of Labor Economics, 33(3), 521–569. doi:10.1086/679670 |