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Heterogeneous Contestants and Effort Provision in Tournaments - an Empirical Investigation with Professional Sports Data

By Johannes Berger and Petra Nieken

Abstract

We empirically investigate if tournaments between heterogeneous contestants are less intense. To test our hypotheses we use professional sports data from the TOYOTA Handball-Bundesliga, the major handball league in Germany. Using either differences in betting odds or rankings to measure ability differences, our results support standard tournament theory as we find a highly significant negative impact of the matchup's heterogeneity on joint teame efforts. However, further analysis shows that this overall decrease in efforts is almost entirely driven by the reaction of the ex-ante favorite team.

Topics: Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems, B4 - Die Gestaltung von Turnieren im Rahmen der Corporate Governance, ddc:330
Year: 2010
DOI identifier: 10.1177/1527002514538639
OAI identifier: oai:epub.ub.uni-muenchen.de:13229
Provided by: Open Access LMU

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