Rank-order tournaments, probability of winning and investing in talent:evidence from Champions’ League qualifying rules

Green, Colin and Lozano, Fernando and Simmons, Robert (2015) Rank-order tournaments, probability of winning and investing in talent:evidence from Champions’ League qualifying rules. National Institute Economic Review, 232 (1). R30-R40. ISSN 0027-9501

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Abstract

We analyse how a change in the probability of winning a tournament affects an agent's effort using the qualification rules for entry into the group and playoff stages of the UEFA Champions' League. Our results suggest that increasing the number of slots that a national league gets in the Champions' League leads to increases in investment in talent ex ante. This effect is largest among the teams that in the previous season just failed to qualify. This suggests that changes in prize structure leads to changes in investment decisions amongst those clubs most affected at the margin. However, we also find that incumbent teams that have already qualified for the Champions' League simultaneously raise their efforts, consistent with the occurrence of an arms race among top European football teams.

Item Type:
Journal Article
Journal or Publication Title:
National Institute Economic Review
Additional Information:
The final, definitive version of this article has been published in the Journal, National Institute Economic Review, 232 (1), 2015, © SAGE Publications Ltd, 2015 by SAGE Publications Ltd at the National Institute Economic Review page: http://ner.sagepub.com/ on SAGE Journals Online: http://online.sagepub.com/
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000
Subjects:
ID Code:
73791
Deposited By:
Deposited On:
31 Jul 2015 09:06
Refereed?:
Yes
Published?:
Published
Last Modified:
25 Oct 2020 03:13