Conditioning the effect of prize on tournament self-selection

Print Share
This study examines how past performance moderates the effect of the size of the prize on tournament self-selection. We identify two types of trajectories that play simultaneous and unique roles in moderating the influence of prize on an agent’s decision to enter a tournament: within- period trajectory, which reflects an agent’s short-term performance streak in the tournaments recently entered, and across-period trajectory, which reflects an agent’s long-term performance streak in the same tournament across different periods. We find that positive (negative) within- period and across-period trajectories strengthen (weaken) the positive effect of the size of the prize on tournament entry. Although both performance trajectories have a significant and sizable in-fluence, we find that within-period trajectory plays the strongest moderating effect. We draw on the representativeness heuristic and the availability heuristic to explain our findings. We study these notions using 54,915 self-selection decisionsthat professional golfers have taken over a ten- year period (1996–2006) when entering PGA Tour tournaments. We draw implications for the craft of contest design.
Bibliographic citation: PASTORIZA, D., ALEGRE, I., CANELA, M. Á. (2021). Conditioning the effect of prize on tournament self-selection. JOURNAL OF ECONOMIC EDUCATION, 86, Article 102414. doi:10.1016/j.joep.2021.102414.

Reference: 10.1016/j.joep.2021.102414 (DOI)
Date: 01/10/2021
Author(s): David Pastoriza; Inés Alegre; Miguel Ángel Canela
Document type: Article in Journal (refereed)
Department: Managerial Decision Sciences
Sector:
Languages: English