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Prizes and Incentives in Elimination Tournaments

Sherwin Rosen
The American Economic Review
Vol. 76, No. 4 (Sep., 1986), pp. 701-715
Stable URL: http://www.jstor.org/stable/1806068
Page Count: 15
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Prizes and Incentives in Elimination Tournaments
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Abstract

Contestants who succeed in attaining high ranks in elimination career ladders rest on their laurels in attempting to climb higher, unless top-ranking prizes are given a disproportionate weight in the purse. A large first-place prize gives survivors something to shoot for, independent of past performances and accomplishments.

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