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The burden of glory: Competing for nonmonetary incentives in rank‐order tournaments
Author(s) -
Kali Raja,
Pastoriza David,
Plante JeanFrançois
Publication year - 2017
Publication title -
journal of economics and management strategy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.672
H-Index - 68
eISSN - 1530-9134
pISSN - 1058-6407
DOI - 10.1111/jems.12233
Subject(s) - incentive , choking , order (exchange) , rank (graph theory) , elite , glory , tournament , variance (accounting) , economics , microeconomics , public economics , marketing , business , political science , law , accounting , finance , physics , mathematics , optics , combinatorics , medicine , politics , anatomy
In an environment in which elite, highly paid professionals compete for nonmonetary rewards, we find evidence of underperformance. Our analysis suggests that choking under pressure from high‐stakes nonmonetary rewards is behind the underperformance. This implies that high stakes nonmonetary rewards can create meaningful pressure on individuals and lead to worse performance, a distinct issue that has yet to be adequately examined. These findings come from an examination of the behavior of top U.S. golfers competing to earn a place on the U.S. Ryder Cup team via their performance in PGA Tour tournaments with differing allocations of Ryder Cup qualifying points.