William Chan, Pascal Courty, Hao Li, 18 March 2009

Sports contests produce a vast wealth of statistics and data describing players’ performance that fans love to analyse. So why are the contests themselves decided by a very crude measure – win or lose? This column explains that the rank order tournament reward scheme provides the incentives that create the sports drama fans crave – contestants giving their best effort when the uncertain outcome is up for grabs.


CEPR Policy Research