IDEAS home Printed from https://ideas.repec.org/a/inm/ordeca/v15y2018i1p11-26.html
   My bibliography  Save this article

When to Release Feedback in a Dynamic Tournament

Author

Listed:
  • Brendan Daley

    (The Fuqua School of Business, Duke University, Durham, North Carolina 27708)

  • Ruoyu Wang

    (The Fuqua School of Business, Duke University, Durham, North Carolina 27708)

Abstract

We study dynamic tournaments in which time is modeled explicitly, as opposed to with the abstract notion of “periods.” By doing so, we characterize the effects of the ex ante designated timing of an interim progress report. Whether or not a policy of reporting increases total expected effort does not depend on the release time of the report; however, the magnitude of the effect does. We demonstrate that total expected effort is single peaked or single troughed in the report’s release time depending on parameters, with the peak/tough located at a time strictly more than halfway through the tournament. However, a policy of releasing information always harms the expected utility of the tournament’s participants. Implications for tournament design are discussed.

Suggested Citation

  • Brendan Daley & Ruoyu Wang, 2018. "When to Release Feedback in a Dynamic Tournament," Decision Analysis, INFORMS, vol. 15(1), pages 11-26, March.
    • Handle: RePEc:inm:ordeca:v:15:y:2018:i:1:p:11-26
    DOI: 10.1287/deca.2017.0357
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/deca.2017.0357
    Download Restriction: no
    File URL: https://libkey.io/10.1287/deca.2017.0357?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lazear, Edward P & Rosen, Sherwin, 1981. "Rank-Order Tournaments as Optimum Labor Contracts," Journal of Political Economy, University of Chicago Press, vol. 89(5), pages 841-864, October.
    2. Benny Moldovanu & Aner Sela, 2008. "The Optimal Allocation of Prizes in Contests," Springer Books, in: Roger D. Congleton & Arye L. Hillman & Kai A. Konrad (ed.), 40 Years of Research on Rent Seeking 1, pages 615-631, Springer.
    3. Konrad, Kai A., 2009. "Strategy and Dynamics in Contests," OUP Catalogue, Oxford University Press, number 9780199549603.
    4. Jun Zhang & Ruqu Wang, 2009. "The Role of Information Revelation in Elimination Contests," Economic Journal, Royal Economic Society, vol. 119(536), pages 613-641, March.
    5. Christopher Budd & Christopher Harris & John Vickers, 1993. "A Model of the Evolution of Duopoly: Does the Asymmetry between Firms Tend to Increase or Decrease?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(3), pages 543-573.
    6. Podsakoff, Philip M. & Farh, Jiing-Lih, 1989. "Effects of feedback sign and credibility on goal setting and task performance," Organizational Behavior and Human Decision Processes, Elsevier, vol. 44(1), pages 45-67, August.
    7. David A. Malueg & Shunichi O. Tsutsui, 1997. "Dynamic R&D Competition with Learning," RAND Journal of Economics, The RAND Corporation, vol. 28(4), pages 751-772, Winter.
    8. Gary Charness & David Masclet & Marie Claire Villeval, 2014. "The Dark Side of Competition for Status (preprint)," Working Papers halshs-01090241, HAL.
    9. Gary Charness & David Masclet & Marie Claire Villeval, 2014. "The Dark Side of Competition for Status," Management Science, INFORMS, vol. 60(1), pages 38-55, January.
    10. Green, Jerry R & Stokey, Nancy L, 1983. "A Comparison of Tournaments and Contracts," Journal of Political Economy, University of Chicago Press, vol. 91(3), pages 349-364, June.
    11. Iván Marinovic, 2015. "The Credibility of Performance Feedback in Tournaments," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 24(1), pages 165-188, March.
    12. Jay P. Choi, 1991. "Dynamic R&D Competition under "Hazard Rate" Uncertainty," RAND Journal of Economics, The RAND Corporation, vol. 22(4), pages 596-610, Winter.
    13. Alannah Orrison & Andrew Schotter & Keith Weigelt, 2004. "Multiperson Tournaments: An Experimental Examination," Management Science, INFORMS, vol. 50(2), pages 268-279, February.
    14. Yildirim, Huseyin, 2005. "Contests with multiple rounds," Games and Economic Behavior, Elsevier, vol. 51(1), pages 213-227, April.
    15. D. Marc Kilgour & Yigal Gerchak, 2004. "Elicitation of Probabilities Using Competitive Scoring Rules," Decision Analysis, INFORMS, vol. 1(2), pages 108-113, June.
    16. Pablo Casas-Arce & F. Asís Martínez-Jerez, 2009. "Relative Performance Compensation, Contests, and Dynamic Incentives," Management Science, INFORMS, vol. 55(8), pages 1306-1320, August.
    17. Bonatti, Alessandro & Hörner, Johannes, 2017. "Career concerns with exponential learning," Theoretical Economics, Econometric Society, vol. 12(1), January.
    18. Jun Zhang & Ruqu Wang, 2009. "The Role of Information Revelation in Elimination Contests," Economic Journal, Royal Economic Society, vol. 119(536), pages 613-641, March.
    19. Jakša Cvitanić & George Georgiadis, 2016. "Achieving Efficiency in Dynamic Contribution Games," American Economic Journal: Microeconomics, American Economic Association, vol. 8(4), pages 309-342, November.
    20. David J. Johnstone, 2007. "The Parimutuel Kelly Probability Scoring Rule," Decision Analysis, INFORMS, vol. 4(2), pages 66-75, June.
    21. Robert Ridlon & Jiwoong Shin, 2013. "Favoring the Winner or Loser in Repeated Contests," Marketing Science, INFORMS, vol. 32(5), pages 768-785, September.
    22. Marina Halac & Navin Kartik & Qingmin Liu, 2017. "Contests for Experimentation," Journal of Political Economy, University of Chicago Press, vol. 125(5), pages 1523-1569.
    23. Cao, Dan, 2014. "Racing under uncertainty: Boundary value problem approach," Journal of Economic Theory, Elsevier, vol. 151(C), pages 508-527.
    24. Christopher Harris & John Vickers, 1987. "Racing with Uncertainty," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 54(1), pages 1-21.
    25. Florian Ederer, 2010. "Feedback and Motivation in Dynamic Tournaments," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(3), pages 733-769, September.
    26. Gershkov, Alex & Perry, Motty, 2009. "Tournaments with midterm reviews," Games and Economic Behavior, Elsevier, vol. 66(1), pages 162-190, May.
    27. Hua Chen & Sung H. Ham & Noah Lim, 2011. "Designing Multiperson Tournaments with Asymmetric Contestants: An Experimental Study," Management Science, INFORMS, vol. 57(5), pages 864-883, May.
    28. Camelia M. Kuhnen & Agnieszka Tymula, 2012. "Feedback, Self-Esteem, and Performance in Organizations," Management Science, INFORMS, vol. 58(1), pages 94-113, January.
    29. Maria Goltsman & Arijit Mukherjee, 2011. "Interim Performance Feedback in Multistage Tournaments: The Optimality of Partial Disclosure," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 229-265.
    30. Aoyagi, Masaki, 2010. "Information feedback in a dynamic tournament," Games and Economic Behavior, Elsevier, vol. 70(2), pages 242-260, November.
    31. Anil Gaba & Ilia Tsetlin & Robert L. Winkler, 2004. "Modifying Variability and Correlations in Winner-Take-All Contests," Operations Research, INFORMS, vol. 52(3), pages 384-395, June.
    32. Nirvikar Singh & Donald Wittman, 1988. "Economic Contests with Incomplete Information and Optimal Contest Design," Management Science, INFORMS, vol. 34(4), pages 528-540, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dmitry Ryvkin, 2022. "To Fight or to Give Up? Dynamic Contests with a Deadline," Management Science, INFORMS, vol. 68(11), pages 8144-8165, November.
    2. Xu Tian & Gongbing Bi, 2022. "Multiplicative output form and its applications to problems in the homogenous innovation contest model," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(3), pages 709-732, September.
    3. Bo Chen & Bo Chen & Dmitriy Knyazev, 2022. "Information disclosure in dynamic research contests," RAND Journal of Economics, RAND Corporation, vol. 53(1), pages 113-137, March.
    4. Vicki M. Bier & Simon French, 2020. "From the Editors: Decision Analysis Focus and Trends," Decision Analysis, INFORMS, vol. 17(1), pages 1-8, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dmitry Ryvkin, 2022. "To Fight or to Give Up? Dynamic Contests with a Deadline," Management Science, INFORMS, vol. 68(11), pages 8144-8165, November.
    2. Klein, Arnd Heinrich & Schmutzler, Armin, 2017. "Optimal effort incentives in dynamic tournaments," Games and Economic Behavior, Elsevier, vol. 103(C), pages 199-224.
    3. Jürgen Mihm & Jochen Schlapp, 2019. "Sourcing Innovation: On Feedback in Contests," Management Science, INFORMS, vol. 65(2), pages 559-576, February.
    4. Emmanuel Dechenaux & Dan Kovenock & Roman Sheremeta, 2015. "A survey of experimental research on contests, all-pay auctions and tournaments," Experimental Economics, Springer;Economic Science Association, vol. 18(4), pages 609-669, December.
    5. Gwen-Jiro Clochard & Guillaume Hollard & Julia Wirtz, 2022. "More effort or better technologies? On the effect of relative performance feedback," Bristol Economics Discussion Papers 22/767, School of Economics, University of Bristol, UK.
    6. Bo Chen & Bo Chen & Dmitriy Knyazev, 2022. "Information disclosure in dynamic research contests," RAND Journal of Economics, RAND Corporation, vol. 53(1), pages 113-137, March.
    7. Cédric Gutierrez & Tomasz Obloj & Douglas H. Frank, 2021. "Better to have led and lost than never to have led at all? Lost leadership and effort provision in dynamic tournaments," Strategic Management Journal, Wiley Blackwell, vol. 42(4), pages 774-801, April.
    8. Shanglyu Deng & Hanming Fang & Qiang Fu & Zenan Wu, 2023. "Information Favoritism and Scoring Bias in Contests," PIER Working Paper Archive 23-002, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    9. Delfgaauw, Josse & Dur, Robert & Non, Arjan & Verbeke, Willem, 2014. "Dynamic incentive effects of relative performance pay: A field experiment," Labour Economics, Elsevier, vol. 28(C), pages 1-13.
    10. Subhasish M. Chowdhury & Patricia Esteve‐González & Anwesha Mukherjee, 2023. "Heterogeneity, leveling the playing field, and affirmative action in contests," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 924-974, January.
    11. Christian Ewerhart & Julia Lareida, 2018. "Voluntary disclosure in asymmetric contests," ECON - Working Papers 279, Department of Economics - University of Zurich, revised Jul 2023.
    12. Josse Delfgaauw & Robert Dur & Arjan Non & Willem Verbeke, 2015. "The Effects of Prize Spread and Noise in Elimination Tournaments: A Natural Field Experiment," Journal of Labor Economics, University of Chicago Press, vol. 33(3), pages 521-569.
    13. Barbieri, Stefano & Serena, Marco, 2022. "Biasing dynamic contests between ex-ante symmetric players," Games and Economic Behavior, Elsevier, vol. 136(C), pages 1-30.
    14. Maria Goltsman & Arijit Mukherjee, 2011. "Interim Performance Feedback in Multistage Tournaments: The Optimality of Partial Disclosure," Journal of Labor Economics, University of Chicago Press, vol. 29(2), pages 229-265.
    15. Peter-J. Jost, 2021. "“The ball is round, the game lasts 90 minutes, everything else is pure theoryâ€," Journal of Sports Economics, , vol. 22(1), pages 27-74, January.
    16. Johannes Berger & Petra Nieken, 2016. "Heterogeneous Contestants and the Intensity of Tournaments," Journal of Sports Economics, , vol. 17(7), pages 631-660, October.
    17. Gershkov, Alex & Perry, Motty, 2009. "Tournaments with midterm reviews," Games and Economic Behavior, Elsevier, vol. 66(1), pages 162-190, May.
    18. Denter, Philipp & Sisak, Dana, 2015. "Do polls create momentum in political competition?," Journal of Public Economics, Elsevier, vol. 130(C), pages 1-14.
    19. Galina Besstremyannaya & Sergei Golovan, 2019. "Physician’s altruism in incentive contracts: Medicare’s quality race," CINCH Working Paper Series 1903, Universitaet Duisburg-Essen, Competent in Competition and Health.
    20. Migheli, Matteo, 2019. "Competing for promotion: Are “THE BEST” always the best?," Research in Economics, Elsevier, vol. 73(2), pages 149-161.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ordeca:v:15:y:2018:i:1:p:11-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.