Are competitors forward looking in strategic interactions? Field evidence from multistage tournaments

Lackner, Mario; Stracke, Rudi; Sunde, Uwe and Winter-Ebmer, RudolfORCID: https://orcid.org/0000-0001-8157-6631 (2020) Are competitors forward looking in strategic interactions? Field evidence from multistage tournaments. Journal of Economic Behavior and Organization, 179, pp. 544-565.

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Abstract or Table of Contents

This paper investigates whether decision makers are forward looking in dynamic strategic interactions and incorporate variations of continuation values in their choices. Using data from professional and semi-professional basketball tournaments, we find that the expected relative strength of a team in future interactions indeed affects behavior in the present. The results also show that the response to changes in the continuation value is stronger if the structure of prizes is convex across stages, if the players are in a decisive game and if the prevalence of free riding within a team is low.

Item Type: Article in Academic Journal
Keywords: Promotion tournament, Multistage contest, Elimination, Forward-looking behavior, Heterogeneity
Classification Codes (e.g. JEL): M51, J33
Research Units: Divisions > Former Research Units (until 2020) > Labor Market and Social Policy
Status: Published
Date Deposited: 14 Dec 2020 12:22
Last Modified: 14 Dec 2020 12:22
Identification Number or DOI: 10.1016/j.jebo.2020.09.012
ISSN: 1879-1751
URI: https://irihs.ihs.ac.at/id/eprint/5577

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