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Article

Winning by Losing: Incentive Incompatibility in Multiple Qualifiers

Journal of Sports Economics. 2018. Vol. 19. No. 8. P. 1122-1146.

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 knockout tournaments with noncumulative prizes, which are ubiquitous around the world, are generically incentive incompatible. We use our model to discuss potential remedies and applications.