The Burden of Glory: Competing for Non-monetary Incentives in Rank-order Tournaments Suggested running head: “The Burden of Glory” RAJA KALI Department of Economics. Sam M. Walton College of Business. University of Arkansas Henry Angus Building, 2053. Fayetteville, AR 72701-1201
[email protected] DAVID PASTORIZA* (corresponding author) Department of International Business. HEC Montréal. Chemin de la Cote-Sainte-Catherine, 3000. Montréal, Canada. H3T 2AT
[email protected] JEAN-FRANÇOIS PLANTE Department of Decision Sciences. HEC Montréal. Chemin de la Cote-Sainte-Catherine, 3000. Montréal, Canada. H3T 2AT
[email protected] The Burden of Glory: Competing for Non-monetary Incentives in Rank-order Tournaments Abstract In an environment in which elite, highly-paid professionals compete for non-monetary rewards, we find evidence of underperformance. Our analysis suggests that choking under pressure from high-stakes non-monetary rewards is behind the underperformance. This implies that high stakes non-monetary rewards can create meaningful pressure on individuals and lead to worse performance, a distinct issue that has yet to be adequately examined. These findings come from an examination of the behavior of top US golfers competing to earn a place on the US Ryder Cup team via their performance in PGA Tour tournaments with differing allocations of Ryder Cup qualifying points. Keywords: Competition, non-monetary incentives, high stakes, choking, performance, risk-taking, intimidation The Burden of Glory: Competing for Non-monetary Incentives in Rank-order Tournaments Abstract: In an environment in which elite, highly-paid professionals compete for non- monetary rewards, we find evidence of underperformance. Our analysis suggests that choking under pressure from high-stakes non-monetary rewards is behind the underperformance.