Quitters Never Win: The (Adverse) Incentive E¤ects of Competing with Superstars
نویسنده
چکیده
Managers use internal competition to motivate worker e¤ort, yet economic theory suggests that the bene ts of competition may depend critically on workers relative abilities large di¤erences in skill may reduce competitors e¤orts. This paper uses panel data from professional golfers and nds that the presence of a superstar in a rankorder tournament is associated with lower competitor performance. On average, higherskill PGA golfers rst-round scores are approximately 0.2 strokes higher when Tiger Woods participates, relative to when Woods is absent. The overall superstar e¤ect for tournaments is approximately 0.8 strokes. The adverse superstar e¤ect increases when Woods is playing well and disappears during Woodss weaker periods. There is no evidence that reduced performance is due to riskierplay. Keywords: tournament, e¤ort, superstar, incentives. Northwestern University-Department of Management & Strategy, Kellogg School of Management, 2001 Sheridan Road, Evanston, IL 60208-2001; [email protected]. I gratefully acknowledge John Morgan, Je¤ Perlo¤, Paul Gertler, Steven Tadelis, So a Villas-Boas, Ryan Kellogg and numerous seminar participants for their helpful comments.
منابع مشابه
Quitters Never Win: The (Adverse) Incentive Effects of Competing with Superstars
Internal competition may motivate worker effort, yet the benefits of competition may depend critically on workers’ relative abilities: large skill differences may reduce efforts. I use panel data from professional golf tournaments and find that the presence of a superstar is associated with lower performance. On average, golfers’ first-round scores are approximately 0.2 strokes worse when Tiger...
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