The Effects of Prize Spread and Noise in Elimination Tournaments: A Natural Field Experiment

A-Tier
Journal: Journal of Labor Economics
Year: 2015
Volume: 33
Issue: 3
Pages: 521 - 569

Authors (4)

Josse Delfgaauw (not in RePEc) Robert Dur (not in RePEc) Arjan Non (Erasmus Universiteit Rotterdam) Willem Verbeke (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

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

Abstract

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.

Technical Details

RePEc Handle
repec:ucp:jlabec:doi:10.1086/679670
Journal Field
Labor
Author Count
4
Added to Database
2026-01-25