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Article

Winning by Losing: Incentive Incompatibility in Multiple Qualifiers

In sport tournaments, the rules are presumably structured in a way that any participant cannot benefit by losing instead of winning. We show that tournament systems, consisting of multiple round-robin and knock-out tournaments with non-cumulative prizes, which are ubiquitious around the world, are generically incentive incompatible. We use our model to discuss potential remedies and applications.