Are Competitors Forward Looking in Strategic Interactions? Evidence from the Field

Mario Lackner, Rudolf Winter-Ebmer, Uwe Sunde and Rudi Stracke

No 2015-11, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria

Abstract: This paper investigates whether decision makers are forward looking in dynamic strategic interactions and incorporate variations of continuation values in their choices. Using data from professional and semi-professional basketball tournaments, we find that the expected relative strength of a team in future interactions indeed affects behavior in the present. The results also show that the response to changes in the continuation value is stronger if the structure of prizes is convex across stages, if the players are in a decisive game and if the prevalence of free riding within a team is low.

Keywords: Promotion tournament; multistage contest; elimination; forward-looking behavior; heterogeneity (search for similar items in EconPapers)
JEL-codes: J33 M51 (search for similar items in EconPapers)
Pages: 50 pages
Date: 2015-11
New Economics Papers: this item is included in nep-cse and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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http://www.econ.jku.at/papers/2015/wp1511.pdf (application/pdf)

Related works:
Working Paper: Are Competitors Forward Looking in Strategic Interactions? Evidence from the Field (2015)
Working Paper: Are Competitors Forward Looking in Strategic Interactions? Evidence from the Field (2015)
Working Paper: Are Competitors Forward Looking in Strategic Interactions? Evidence from the Field (2015)
Working Paper: Are Competitors Forward Looking in Strategic Interactions? Evidence from the Field (2015)
Working Paper: Are competitors forward looking in strategic interactions?: evidence from the field (2015)
Working Paper: Are competitors forward looking in strategic interactions? Evidence from the field (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2015_11

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