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This paper analyzes two-stage rank-order tournaments. A principal decides (i) how to spread prize money across the two periods, (ii) how to weigh performance in the two periods when awarding the second-period prize, and (iii) whether to reveal performance after the first period. The information...
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provides incentives to increase effort in order to reach the playoffs and incentives to decrease effort once a team has been … incentives - they win more games when there is still a chance to reach the playoffs and lose more after being eliminated from … result of lower motivation or disappointment. This is the first study to show that this is not the only explanation for a …
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