This paper circulates around the core theme of Looking at the data, what is your guess about which type of tournament has higher (better) performance. Is your answer to part a consistent with the predictions of contest theory? Why or why not? together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
One of the predictions of contest theory is that effort is greater in
symmetric contests, where ability is relatively equal as compared to
asymmetric contests, where ability is unequal. In “the incentive effects
of leveling the playing field,” Franke tests this idea with data on
amateur golf tournaments. The paper is here.
.archives-ouvertes.fr/hal-00670763/document”>https://hal.archives-ouvertes.fr/hal-00670763/document
He compares performance when the score uses unadjusted scores versus
those that adjusts score by handicap. (Handicap scoring levels the
playing field for the lower ability golfer.) Here is the distribution of
performance difference in tournaments that use gross (unadjusted) vs
net (adjusted). (Performance is measured using the Stabelford system. If
there were no difference in performance, the distribution should be
approximately binomial with a mean of zero.
a. Looking at the data, what is your guess about which type of tournament has higher (better) performance.
b. Is your answer to part a consistent with the predictions of contest theory? Why or why not?
The table shows regression coefficients (standard errors in
parenthesis) for the independent variables. The dependent variable is
score. (again, under the stabelford system higher is better).
c. Type is a dummy variable with 1 for net score tournaments and 0
for gross score tournaments. Explain the meaning of the coefficient.
d. Is it significant at the 5% level? Explain.
e. What is the t-statistic? ________________
f. The variables PAR and CR are measures of difficulty of the course,
and PHANDICAP is a measure of the golfer’s ability. Why are these
variables included in the regression equation?