Raja Kali, a professor in the Walton College Department of Economics and the Conoco Phillips Chair in International Economics and Business, has had his paper entitled “The Burden of Glory: Competing for Non-Monetary Incentives in Rank-Order Tournaments” accepted for publication in the Journal of Economics & Management Strategy.
Kali co-authored the paper, which examines professional golfers’ performance in tournaments such as the Ryder Cup and its application to business practices, with David Pastoriza and Jean-Francois Plante, both from HEC Montréal. HEC Montréal is a French-language university institution offering internationally renowned management education and research.
Plante is an associate professor in the Department of Decision Sciences at HEC Montréal and Pastoriza is an associate professor in its Department of International Business.
From the paper’s 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 U.S. golfers competing to earn a place on the U.S. Ryder Cup team via their performance in PGA Tour tournaments with differing allocations of Ryder Cup qualifying points.”