6,172 research outputs found
Tournaments with Midterm Reviews
In many tournaments investments are made over time and conducting a review only once at the end, or also at points midway through, is a strategic decision of the tournament designer. If the latter is chosen, then a rule according to which the results of the different reviews are aggregated into a ranking must also be determined. This paper takes a first step in the direction of answering how such rules are optimally designed. A characterization of the optimal aggregation rule is provided for a two-agent two-stage tournament. In particular, we show that treating the two reviews symmetrically may result in an equilibrium effort level that is inferior to the one in which only a final review is conducted. However, treating the two reviews lexicographically by first looking at the final review, and then using the midterm review only as a tie-breaking rule, strictly dominates the option of conducting a final review only. The optimal mechanism falls somewhere in between these two extreme mechanisms. It is shown that the more effective the first-stage effort is in determining the final review’s outcome, the smaller is the weight that should be assigned to the midterm review in determining the agents’ ranking
Optimal Seedings in Elimination Tournaments
We study an elimination tournament with heterogenous contestants whose ability is common-knowledge. Each pair-wise match is modeled as an all-pay auction where the winner gets the right to compete at the next round. Equilibrium efforts are in mixed strategies, yielding rather complex play dynamics: the endogenous win probabilities in each match depend on the outcome of other matches through the identity of the expected opponent in the next round. The designer can seed the competitors according to their ranks. For tournaments with four players we find optimal seedings with respect to three different criteria: 1) maximization of total effort in the tournament; 2) maximization of the probability of a final among the two top ranked teams; 3) maximization of the win probability for the top player. In addition, we find the seedings ensuring that higher ranked players have a higher probability to win the tournament. Finally, we compare the theoretical predictions with data from NCAA basketball tournaments
Tournaments with Midterm Reviews
In many tournaments investments are made over time and conducting a review only once at the end, or also at points midway through, is a strategic decision of the tournament designer. If the latter is chosen, then a rule according to which the results of the different reviews are aggregated into a ranking must also be determined. This paper takes a first step in the direction of answering how such rules are optimally designed. A characterization of the optimal aggregation rule is provided for a two-agent two-stage tournament. In particular, we show that treating the two reviews symmetrically may result in an equilibrium effort level that is inferior to the one in which only a final review is conducted. However, treating the two reviews lexicographically by first looking at the final review, and then using the midterm review only as a tie-breaking rule, strictly dominates the option of conducting a final review only. The optimal mechanism falls somewhere in between these two extreme mechanisms. It is shown that the more effective the first-stage effort is in determining the final review’s outcome, the smaller is the weight that should be assigned to the midterm review in determining the agents’ ranking.
Collective Production and Incentives
We analyse incentive problems in collective production environments where contributors are compensated according to their observed and ranked efforts. This provides incentives to the contributors to choose first best efforts
Relative Performance Pay in the Shadow of Crisis
We analyze whether incentives from relative performance pay are reduced or enhanced if a department is possibly terminated due to a crisis. Our benchmark model shows that incentives decrease in a severe crisis, but are boosted given a minor crisis since efforts are strategic complements in the former case but strategic substitutes in the latter one. We tested our predictions in a laboratory experiment. The results confirm the effort ranking but show that in a severe crisis individuals deviate from equilibrium significantly stronger than in other situations. This behavior contradicts the benchmark model and leads to a five times higher survival probability of the department. We develop a new theoretical approach that may explain players’ behavior
Historical Excellence' in Soccer World Cup Tournaments: Empirical Evidence with Data from 1930 to 2002
Introduction – 1. Setting an empirical model to measure WorldCup soccer success – 2. Overview and discussion of the empiricalresults - 3. Summary of the results and some concluding remarks
Optimal Data Collection For Informative Rankings Expose Well-Connected Graphs
Given a graph where vertices represent alternatives and arcs represent
pairwise comparison data, the statistical ranking problem is to find a
potential function, defined on the vertices, such that the gradient of the
potential function agrees with the pairwise comparisons. Our goal in this paper
is to develop a method for collecting data for which the least squares
estimator for the ranking problem has maximal Fisher information. Our approach,
based on experimental design, is to view data collection as a bi-level
optimization problem where the inner problem is the ranking problem and the
outer problem is to identify data which maximizes the informativeness of the
ranking. Under certain assumptions, the data collection problem decouples,
reducing to a problem of finding multigraphs with large algebraic connectivity.
This reduction of the data collection problem to graph-theoretic questions is
one of the primary contributions of this work. As an application, we study the
Yahoo! Movie user rating dataset and demonstrate that the addition of a small
number of well-chosen pairwise comparisons can significantly increase the
Fisher informativeness of the ranking. As another application, we study the
2011-12 NCAA football schedule and propose schedules with the same number of
games which are significantly more informative. Using spectral clustering
methods to identify highly-connected communities within the division, we argue
that the NCAA could improve its notoriously poor rankings by simply scheduling
more out-of-conference games.Comment: 31 pages, 10 figures, 3 table
- …