Winning by Losing: Incentive Incompatibility in Multiple Qualifiers
36 Pages Posted: 28 Feb 2013 Last revised: 19 Mar 2017
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Winning by Losing: Incentive Incompatibility in Multiple Qualifiers
Number of pages: 36
Posted: 28 Feb 2013
Last Revised: 19 Mar 2017
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Winning by Losing: Incentive Incompatibility in Multiple Qualifiers
CEPR Discussion Paper No. DP9373
Number of pages: 20
Posted: 12 Mar 2013
Date Written: November 30, 2014
Abstract
In sport tournaments, the rules are presumably structured in a way that any participant cannot benefit by losing instead of winning. We show that tournament systems, consisting of multiple round-robin and knock-out tournaments with non-cumulative prizes, which are ubiquitious around the world, are generically incentive incompatible. We use our model to discuss potential remedies and applications.
Keywords: tournaments, design, rules, football, incentives
JEL Classification: Z20, D71
Suggested Citation: Suggested Citation
Dagaev, Dmitry and Sonin, Konstantin, Winning by Losing: Incentive Incompatibility in Multiple Qualifiers (November 30, 2014). Available at SSRN: https://ssrn.com/abstract=2225463 or http://dx.doi.org/10.2139/ssrn.2225463
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