Joachim Prinz

Pay inequalities and team performance

Wage disparities and their consequences have long been a topic of economic research. While most papers focus on describing the development of wage differentials over time and seek to identify the reasons for the observed patterns, few attempts have been made to analyze the influence of pay inequality on economic outcomes. A unique and rather large data set from the North American team sports industry is used to address the question how wage disparities affect the performance of professional teams. First, changes in intra‐ and inter‐team wage inequality are documented. Second, the impact of wage inequality on team performance is directly analyzed. Overall, the results differ to a considerable degree between the four major leagues, suggesting that the relative importance of high‐powered incentives and cooperation is different in football and hockey from basketball and baseball.

Sabotage in Tournaments with Heterogeneous Contestants: Empirical Evidence from the Soccer Pitch

In this paper, we address the problem of sabotage in tournaments with heterogeneous contestants. In a first step, we develop a formal model, which yields the prediction that favorites exert higher productive effort, while underdogs are more tempted to engage in destructive actions (sabotage). This is because favorites have a higher return on productive effort and both types of effort are substitutes. In a second step, we use data from German professional soccer to test this prediction. In line with the model, we find that favorite teams win more tackles in a fair way, while underdog teams commit more fouls.

Membership in Nonprofit Sport Clubs A Dynamic Panel Analysis of External Organizational Factors

Investments in elite sport and sport events are often justified by governments with the trickle-down effect. Theoretically, this effect implies that people are inspired by sporting success, the personality of athletes, and hosting elite sport events to practice sport. However, previous research had difficulties in measuring, modeling, and providing evidence of this effect. The purpose of this study is to examine such external drivers of membership numbers in German sport clubs. This study uses unique data on male memberships from 1970 to 2011 in 12 Olympic sports. Under the control of economic variables (income, work time, gross domestic product [GDP]), the results of dynamic panel regression models show a significant positive effect of hosting a major sport event on the growth rate in memberships in the same year and several lagged effects for stars and sporting success. The results have implications for policy makers and the capacity management of nonprofit sport clubs.

Big spenders in a booming sport: Consumption capital as a key driver of triathletes’ sport-related expenditure

The demand for triathlon has increased considerably during recent years; however, up to now there is little research available on the economic aspects of this sport. Therefore, the purpose of this study is to investigate the sport-related expenditure of triathletes. Based on the concept of consumption capital, a theoretical framework is presented that explains sport-related expenditure. Quantitative data were collected using a nationwide online survey of active triathletes in Germany (n = 786). Yearly sport-related expenditure amounts to €2745 on average. Regression results show that consumption capital (years of participation, weekly time of practice, self-assessed level of performance, and participation in triathlon competitions) and socio-demographic characteristics (age and income) are significant drivers of sport-related expenditure. The findings have implications for the management and marketing of triathlon and related products (e.g. tourism) because of the increasing number of participating triathletes who represent an economically interesting target group.

Who takes part in triathlon? An application of lifestyle segmentation to triathlon participants

Triathlon has grown and therefore it is important for managers and marketers of triathlon events to know more about their participants. The purpose of this study is to investigate the characteristics of triathlon participants and segment the overall market into smaller segments of consumers. Data on the behaviour, psychographics (lifestyle), and demographics of triathletes was collected by means of an online survey in Germany (n = 786). Lifestyle segmentation was undertaken using a k-means cluster analysis which suggested three clusters. They were labelled serious pursuiters, sport lovers, and socialisers depending on the activities and interests they have in their leisure time. The chi2-test revealed significant differences among clusters in terms of age, gender, years of participation, time of practice, and expenditure. The findings have implications for several stakeholders and allow them to specifically target different groups of triathlon participants.

Incentive Effects in Tournaments with Heterogeneous Competitors – an Analysis of the Olympic Rowing Regatta in Sydney 2000

A large part of the theoretical tournament literature argues that rank-order tournaments only unfold their incentive effects if the contestants all have similar prospects of winning. In heterogeneous fields, the outcome of the tournament is relatively clear and the contestants reduce their effort. However, empirical evidence for this so-called contamination hypothesis is sparse. An analysis of 442 showings at the Olympic Rowing Regatta in Sydney 2000 gives evidence that oarsmen spare effort in heterogeneous heats. This implies that competition among staffs with heterogeneous skill levels does not bring about the intended effort levels. However, a separate subgroup analysis shows that only the tournament favourites hold back effort whereas underdogs bring out their best when competing against dominant rivals. A heterogeneous tournament could then be enriched by absolute performance standards to increase incentives of the favourites.

Performance under pressure: estimating the returns to mental strength in professional basketball

Abstract Human capital theory, one of the cornerstones of modern labor and personnel economics, posits that individual salaries are a function of a persons skills and abilities. Irrespective of its undisputed theoretical importance and practical relevance, the empirical evidence on the impact of personality traits and characteristics on salaries, however, remains limited and inconclusive because most of the existing literature is based on self-reported questionnaire responses. Therefore, we include in our estimations not only the ‘traditional’ measures of a persons human capital, but also analyze the impact of an individuals personality traits that have so far been mostly neglected in the context of income determination. We avoid the ‘subjectivity bias’ that has been criticized in the previous literature and use an unbalanced panel including approximately 200 professional basketball players from the National Basketball Association in the four seasons 2003/2004–2006/2007. With this kind of secondary data we estimate standard Mincer-type earnings functions as well as more advanced quantile regressions. Our findings document a statistically significant and economically considerable impact of ‘mental strength’ on player salaries.

Anreize in Turnieren mit heterogenen Teilnehmern — Eine empirische Untersuchung mit Daten aus der Fußball-Bundesliga

ZusammenfassungObwohl in der theoretischen Literatur zu Turnieren vielfach argumentiert wird, dass diese nur dann ihre vollständige Anreizwirkung entfalten, wenn das Teilnehmerfeld annähernd homogen ist, gibt es dazu bislang kaum empirische Befunde. unter Verwendung von Informationen über insgesamt 756 Spiele der 1. Fußball-Bundesliga können wir zeigen, dass die Spielintensität — gemessen anhand der vom jeweiligen Schiedsrichter verhängten Disziplinarmaßnahmen — bei heterogenen Gegnern weniger stark ausgeprägt ist wie bei annähernd ausgeglichenen Mannschaften. Gegeben dieses Resultat sollten Personalverantwortliche bei der Zusammensetzung unternehmensinterner Turniere darauf achten, dass miteinander konkurrierende Mitarbeiter möglichst ähnliche Fähigkeiten aufweisen.SummaryThis paper offers an empirical test of the theoretical proposition that tournaments between heterogeneous contestants are less intense and, hence, lead to lower effort levels than homogenous tournaments. Using a unique dataset from the top tier in German professional football, we show that matches between more heterogeneous teams are less intense: The number of yellow and yellow/red cards that the players receive in a football match is significantly decreasing in the heterogeneity of the competing teams. This finding has a particular implication for the organization of intra-firm tournaments: Managers should group together contestants who are homogenous with regard to their abilities. If this is not possible, managers should handicap the favourites, introduce additional test standards or use alternative incentive devices.

Arbeitsmarktregulierung und nachvertraglicher Opportunismus: Die Verhaltensfolgen garantierter Handgeldzahlungen in der National Football League

Im Dezember 1995 hat der Europaische Gerichtshof entschieden, dass die jahrzehntelange Praxis, auch dann noch eine Ablosezahlung fur einen den Verein verlassenden Spieler zu verlangen, wenn dessen Vertrag ausgelaufen ist, gegen Art. 48 der Romischen Vertrage verstost.

Diversity effects on team performance in the Tour de France

Purpose – The aim of this study is to examine the effects of team diversity on team performance in the Tour de France. Design/methodology/approach – Longitudinal data on teams participating in the Tour de France between 2004 and 2013 are used for the empirical analysis (n = 208). Team performance is captured with a standardized measure controlling for the number of riders arriving in Paris. Diversity is measured with the variation coefficient (continuous variables) and the Blau index (categorical variables). Regression analysis is used to analyze diversity effects on team performance. Findings – The results show that diversity in terms of tenure significantly adds to team performance, while diversity in terms of skills (proxied by body mass index) decreases performance. Diversity in terms of age, nationality, language, previous Tour participations and stage wins has no significant effect on team performance. The more teammates arrive in Paris, the better the team’s performance. Practical implications – The findings have implications for team managers and the composition of teams. Managers should employ riders who are heterogeneous regarding tenure and homogeneous regarding skills. While investing in the integration of riders of different nationalities or languages does not pay off, it can be recommended to select riders who are likely to arrive in Paris. Originality/value – The present study adds to the literature by examining diversity in a variety of attributes including human capital, experience and success that are observable in sport.