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Free keywords:
Dynamic tournament, sports professionals, psychological pressure, value of decision rights, penalty shoot-outs, behavioral economics
JEL:
C93 - Field Experiments
JEL:
D00 - General
JEL:
D81 - Criteria for Decision-Making under Risk and Uncertainty
JEL:
D15 - Intertemporal Household Choice; Life Cycle Models and Saving
JEL:
Z20 - General
Abstract:
In this paper, we show that the right to determine the sequence of moves in a dynamic team tournament improves the chances of winning the contest. Because studying dynamic team tournaments – like R&D races – with interim feedback is difficult with company data, we examine decisions of highly paid professionals in soccer penalty shootouts and show that teams whose captains can decide about the shooting sequence are more likely to win the shootout. So, managerial decisions matter for outcomes of dynamic tournaments and we discuss potential reasons for this finding.
