IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v8y2007i6p633-641.html
   My bibliography  Save this article

To Race or to Place?

Author

Listed:
  • Jeremy T. Schwartz

    (Hampden-Sydney College)

  • Justin P. Isaacs

    (Hampden-Sydney College)

  • Anthony M. Carilli

    (Hampden-Sydney College)

Abstract

The authors use race-level data from 2003 and 2004 to test von Allmen's hypothesis regarding the inefficiency of the NASCAR reward system, where compensation is in the form of points that are accumulated throughout a season. They define drivers as two types, skilled and unskilled. Skilled drivers are hypothesized to be less aggressive than unskilled drivers because they are more productive given the same effort. Accordingly, an unskilled driver must be more aggressive than a skilled one to gain more compensation. The authors test this assertion empirically by modeling accidents as a proxy for aggression. They find that drivers who demonstrate skill in earlier races are less likely to get into accidents in subsequent races, suggesting there is a skill-level difference among drivers.

Suggested Citation

  • Jeremy T. Schwartz & Justin P. Isaacs & Anthony M. Carilli, 2007. "To Race or to Place?," Journal of Sports Economics, , vol. 8(6), pages 633-641, December.
    • Handle: RePEc:sae:jospec:v:8:y:2007:i:6:p:633-641
    DOI: 10.1177/1527002506294944
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1527002506294944
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1527002506294944?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. James G. Lynch & Jeffrey S. Zax, 2000. "The Rewards to Running," Journal of Sports Economics, , vol. 1(4), pages 323-340, November.
    3. Craig A. Depken II & Dennis P. Wilson, 2004. "The Efficiency of the NASCAR Reward System," Journal of Sports Economics, , vol. 5(4), pages 371-386, November.
    4. Scully, Gerald W., 1995. "The Market Structure of Sports," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226743950, October.
    5. Lazear, Edward P, 1989. "Pay Equality and Industrial Politics," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 561-580, June.
    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. Brad Humphreys & Bernd Frick, 2019. "Prize Structure and Performance: Evidence from NASCAR," Economies, MDPI, vol. 7(4), pages 1-13, October.
    2. Alan Deck & Cary Deck & Zhen Zhu, 2014. "Decision Making in a Sequential Game," Journal of Sports Economics, , vol. 15(2), pages 132-149, April.
    3. Dennis Coates & Petr Parshakov, 2016. "Team Vs. Individual Tournaments: Evidence From Prize Structure In Esports," HSE Working papers WP BRP 138/EC/2016, National Research University Higher School of Economics.
    4. Peter A. Groothuis & Jana D. Groothuis & Kurt W. Rotthoff, 2011. "Time on Camera," Journal of Sports Economics, , vol. 12(5), pages 561-570, October.
    5. David M. Yaskewich, 2017. "Heterogeneous Ability and Risk Taking in a Rank-Order Tournament," Journal of Sports Economics, , vol. 18(8), pages 803-830, December.
    6. Brad R. Humphreys & Jane E. Ruseski, 2010. "Problems With Data on the Sport Industry," Journal of Sports Economics, , vol. 11(1), pages 60-76, February.
    7. Craig A. Depken II & Matthew Hood & Ernest King, 2017. "Consistency and Momentum in NASCAR," Journal of Sports Economics, , vol. 18(6), pages 601-621, August.
    8. Shenkman, Evgenia & Coates, Dennis & Chadov, Aleksei & Parshakov, Petr, 2022. "Team vs. individual tournament: An organizer's dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 198(C), pages 476-492.
    9. Jason P. Berkowitz & Craig A. Depken II & Dennis P. Wilson, 2011. "When Going in Circles is Going Backward: Outcome Uncertainty in NASCAR," Journal of Sports Economics, , vol. 12(3), pages 253-283, June.

    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. Brad Humphreys & Bernd Frick, 2019. "Prize Structure and Performance: Evidence from NASCAR," Economies, MDPI, vol. 7(4), pages 1-13, October.
    2. St-Pierre, Marc, 2016. "The role of inequality on effort in tournaments," Mathematical Social Sciences, Elsevier, vol. 81(C), pages 38-52.
    3. David Berri & R. Jewell, 2004. "Wage inequality and firm performance: Professional basketball's natural experiment," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(2), pages 130-139, June.
    4. Gerald W. Scully, 2002. "The Distribution of Performance and Earnings in a Prize Economy," Journal of Sports Economics, , vol. 3(3), pages 235-245, August.
    5. Peter A. Groothuis & Jana D. Groothuis & Kurt W. Rotthoff, 2011. "Time on Camera," Journal of Sports Economics, , vol. 12(5), pages 561-570, October.
    6. Anja Schöttner & Veikko Thiele, 2010. "Promotion Tournaments and Individual Performance Pay," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(3), pages 699-731, September.
    7. Luiz A. Esteves & Pedro S. Martins, 2008. "Is firm performance driven by fairness or tournaments? Evidence from Brazilian matched data," Working Papers 16, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    8. Wu, Qin & Bayer, Ralph-C & Lenten, Liam J.A., 2020. "Conditional Pension Funds to Combat Cheating in Sporting Contests: Theory and Experimental Evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 89(C).
    9. Therry Lallemand & François Rycx, 2006. "Establishment Size and the Dipsersion of Wages: Evidence from european Countries," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 52(4), pages 309-336.
    10. Kragl, Jenny & Schmid, Julia, 2009. "The impact of envy on relational employment contracts," Journal of Economic Behavior & Organization, Elsevier, vol. 72(2), pages 766-779, November.
    11. Markus LANG & Alexander RATHKE & Marco RUNKEL, 2010. "The Economic Consequences Of Foreigner Rules In National Sports Leagues," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 47-64.
    12. Luis Garicano & Richard A. Posner, 2005. "Intelligence Failures: An Organizational Economics Perspective," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 151-170, Fall.
    13. Tor Eriksson & Sabrina Teyssier & Marie‐Claire Villeval, 2009. "Self‐Selection And The Efficiency Of Tournaments," Economic Inquiry, Western Economic Association International, vol. 47(3), pages 530-548, July.
    14. Thierry Lallemand & Robert Plasman & François Rycx, 2008. "Women and Competition in Elimination Tournaments," Journal of Sports Economics, , vol. 9(1), pages 3-19, February.
    15. Bertheau, Antoine, 2021. "Employer Search Behavior: Reasons for Internal Hiring," Labour Economics, Elsevier, vol. 73(C).
    16. Carlo Bellavite Pellegrini & Raul Caruso & Marco Di Domizio, 2021. "Relative wages, payroll structure and performance in soccer. Evidence from Italian Serie A (2007-2019)," DISCE - Quaderni del Dipartimento di Politica Economica dipe0015, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    17. Rudolf Winter‐Ebmer & Josef Zweimüller, 1999. "Intra‐firm Wage Dispersion and Firm Performance," Kyklos, Wiley Blackwell, vol. 52(4), pages 555-572, November.
    18. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    19. Jeffrey A. Flory & Andreas Leibbrandt & John A. List, 2016. "The Effects of Wage Contracts on Workplace Misbehaviors: Evidence from a Call Center Natural Field Experiment," NBER Working Papers 22342, National Bureau of Economic Research, Inc.
    20. Keith F. Gilsdorf & Vasant A. Sukhatme, 2008. "Testing Rosen's Sequential Elimination Tournament Model," Journal of Sports Economics, , vol. 9(3), pages 287-303, June.

    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:sae:jospec:v:8:y:2007:i:6:p:633-641. 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: SAGE Publications (email available below). General contact details of provider: .

    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.