Prizes and Incentives in Elimination Tournaments.

S-Tier
Journal: American Economic Review
Year: 1986
Volume: 76
Issue: 4
Pages: 701-15

Authors (1)

Score contribution per author:

8.043 = (α=2.01 / 1 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Sequential-elimination career games promote survival-of-the-fittest competitors. However, top prizes must be elevated to provide performance incentives in later stages of the game. The option value of achieving a high rank encourages performance effort in early rounds, but the continuation option plays out toward the finals. Concentrating an extra share of the purse on the top prize replaces the option value of early stage competition and ensures that contestants who have achieved high ranks do not rest of their laurels in attempting to climb higher. Copyright 1986 by American Economic Association.

Technical Details

RePEc Handle
repec:aea:aecrev:v:76:y:1986:i:4:p:701-15
Journal Field
General
Author Count
1
Added to Database
2026-01-29