Incentives to lose revisited: The NHL and its tournament incentives

Publication date: Available online 11 July 2018Source: Journal of Economic PsychologyAuthor(s): Helena FornwagnerAbstractThis paper analyzes data from a tournament, namely the National Hockey League regular scheduled season of games, which provides incentives to increase effort in order to reach the playoffs and incentives to decrease effort once a team has been eliminated from playoff considerations because of the entry draft. Our results show that teams react to these dual incentives - they win more games when there is still a chance to reach the playoffs and lose more after being eliminated from playoff considerations. One can argue that losing more games after having no more chance to reach the playoffs could be the result of lower motivation or disappointment. This is the first study to show that this is not the only explanation for a higher amount of lost games. Instead, we find that there is a concrete strategy behind losing.

Source: Journal of Economic Psychology - July 11, 2018 Category: Psychiatry & Psychology Source Type: research