The Queen’s Gambit: Explaining the Superstar Effect Using Evidence from Chess * Eren Bilen† Alexander Matros‡ September 24, 2021 Abstract. Superstars exist in classrooms and workplaces. Superstars can either intimidate others by making their peers put in less effort, or they can encourage others by inspiring everybody to “step up” their game. In this study, we analyze direct and indirect effects of a superstar on their peers using evidence from chess. We find that the direct superstar effect is always negative. The indirect superstar effect depends on the intensity of the superstar: if the skill gap between the superstar and the rest is small (large), there is a positive (negative) peer effect. JEL classification: M52, J3, J44, D3 Keywords: superstar, tournament, effort, chess *We would like to thank seminar participants at Dickinson College, Laboratory Innovation Science at Harvard, Lan- caster University, Murray State University, Sabanci University, Southern Illinois University Edwardsville, University of Nebraska Omaha, and University of South Carolina, as well as, participants in the 6th Contests Theory and Evidence conference at the University of East Anglia and the 90th Southern Economic Association Meeting for their questions and suggestions. We thank the Darla Moore School of Business Research Grant Program for the financial support. †Department of Data Analytics, Dickinson College, Carlisle, PA 17013. Email:
[email protected] ‡Department of Economics, University of South Carolina, Columbia, SC, 29208. Email: alexan-
[email protected] and Department of Economics, Lancaster University, Lancaster, LA1 4YX, United Kingdom. Email:
[email protected] 1. Introduction "When you play against Bobby [Fischer], it is not a question of whether you win or lose.