Road Warrior Booty: Prize Structures in Motorcycle Racing

Terkun, Kristina; Maloney, Michael T.

doi:10.2139/ssrn.213389

Cited by 4 publications

(2 citation statements)

References 26 publications

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“…2. For other studies regarding the incentive effects of tournament theory, see Abrevaya (2002) and Bognanno (1990) for U.S. professional bowling, Becker and Huselid (1992) and Von Allmen (2001) for NASCAR, Terkun and Maloney (2000) for motorcycle, and Orzag (1994) for the PGA Tour.…”

Section: Notesmentioning

confidence: 99%

Women and Competition in Elimination Tournaments

Lallemand

Plasman

Rycx

2007

Journal of Sports Economics

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This article examines how professional female tennis players react to (a) prize incentives and (b) heterogeneity in ex ante players' abilities. It is found that a larger prize spread encourages women to increase effort, even when controlling for many tournament and player characteristics. Further results indicate that uneven contests lead favorites to win more games and underdogs to be less performing. They also show that the performance differential among players increases with the ranking differential. These findings suggest that the outcome of a match is more linked to players' abilities than to players' incentives to adjust effort according to success chances.In traditional business activities, many organizations use payment schemes based on relative or rank performance to foster the average worker's effort. One may argue that, in the sports industry, the organizers of competitions must also set up a structure of prizes that maximizes the performance of players (Szymanski, 2003). Indeed, if players put forth more effort, the competition is more attractive. The crowd, the media, and the sponsors are more interested in the competition, which in turn increases the income of the organizer. In other words, as managers of firms AUTHORS' NOTE: The authors would like to thank two anonymous referees for many useful comments and suggestions on an earlier version of this article. We are also most grateful to Tor Eriksson, Maria Jepsen, and Benoît Mahy for helpful advice. Any remaining errors are those of the authors.

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Section: Notesmentioning

confidence: 99%

Women and Competition in Elimination Tournaments

Lallemand

Plasman

Rycx

2007

Journal of Sports Economics

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“…3 For other studies regarding the incentive effects of tournament theory see e.g. Abrevaya (2002) and Bognanno (1990) for US professional bowling, Becker and Huselid (1992) and Von Allmen (2001) for NASCAR, Terkun and Maloney (2000) for motorcycle and Orzag (1994) for the PGA Tour. Gneezy et al (2003) suggest on the basis of a maze experiment that women's and men's performance increase equally in single sex tournaments due to competition.…”

Section: Introductionmentioning

confidence: 99%

Women and Competition in Elimination Tournaments: Evidence from Professional Tennis Data

2005

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Contest Theory and its Applications in Sports

et al. 2009

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This paper outlines how the theory of contests is applied to professional team sports leagues. In the first part, we present the traditional Tullock contest and explain some basic properties of the equilibrium. We will then extend this static contest to a two-period model in order to analyze dynamic aspects of contests. In the second part, we will present applications of contest theory in sports. In particular, we will show how the Tullock framework is applied to models of team sports leagues. For this purpose, we will first explain the value creation process in team sports leagues and show how club revenues are related to the contest success function. Then, we present some basic modeling issues; for instance, we show how the assumption of flexible vs. fixed talent supply depends on the league under consideration and how it influences the equilibria. Furthermore, we explicate the effect of revenue sharing on competitive balance in the different models. Then we address the relationship between competitive balance and social welfare. Finally, we illustrate why many clubs tend to "overinvest" in playing talent in many team sports leagues.

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Road Warrior Booty: Prize Structures in Motorcycle Racing

Cited by 4 publications

References 26 publications

Women and Competition in Elimination Tournaments

Women and Competition in Elimination Tournaments

Women and Competition in Elimination Tournaments: Evidence from Professional Tennis Data

Contest Theory and its Applications in Sports

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