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  • Uefe Rank Order Final

    Rights statement: The final, definitive version of this article has been published in the Journal, National Institute Economic Review, 232 (1), 2015, © SAGE Publications Ltd, 2015 by SAGE Publications Ltd at the National Institute Economic Review page: http://ner.sagepub.com/ on SAGE Journals Online: http://online.sagepub.com/

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Rank-order tournaments, probability of winning and investing in talent: evidence from Champions’ League qualifying rules

Research output: Contribution to journalJournal articlepeer-review

Published
<mark>Journal publication date</mark>05/2015
<mark>Journal</mark>National Institute Economic Review
Issue number1
Volume232
Number of pages11
Pages (from-to)R30-R40
Publication StatusPublished
<mark>Original language</mark>English

Abstract

We analyse how a change in the probability of winning a tournament affects an agent's effort using the qualification rules for entry into the group and playoff stages of the UEFA Champions' League. Our results suggest that increasing the number of slots that a national league gets in the Champions' League leads to increases in investment in talent ex ante. This effect is largest among the teams that in the previous season just failed to qualify. This suggests that changes in prize structure leads to changes in investment decisions amongst those clubs most affected at the margin. However, we also find that incumbent teams that have already qualified for the Champions' League simultaneously raise their efforts, consistent with the occurrence of an arms race among top European football teams.

Bibliographic note

The final, definitive version of this article has been published in the Journal, National Institute Economic Review, 232 (1), 2015, © SAGE Publications Ltd, 2015 by SAGE Publications Ltd at the National Institute Economic Review page: http://ner.sagepub.com/ on SAGE Journals Online: http://online.sagepub.com/