National Association for Stock Car Auto Racing’s (NASCAR) monetary reward structure uses a linear payout for races, with a nonlinear payout for the season long tournament. The authors suggest that the season long nonlinear payout is magnified by taking into consideration the value of sponsorship time on camera and sponsor mentions during a race on TV. Given the importance of corporate sponsorship in NASCAR, the authors suggest that performance in a race provides additional benefits that are not captured in the monetary payout.
BandieraO.BarankayI.RasulI. (2007). Incentives for managers and inequality among workers: Evidence from a firm level experiment. MIT Press, 122, 729–773, 05.
2.
BeckerB.HuselidM. (1992). The incentive effects of tournament compensation systems. Administrative Science Quarterly, 37, 336–350.
3.
BrownJ. (2008). Quitters never win: The (Adverse) incentive effects of competing with superstars. Working paper. Northwestern University.
4.
BrownZ. (2008). Wind tunnel with Dave Despain, Interview Speed Channel, March30.
5.
CazeneuveB.HabibD.MenezG.SykenB.WooA.SchecterB. J. (2004, December 12). What fans watch. Sports Illustrated, 101, 121.
6.
ChangR. S. (2007, November 16). NASCAR still Second Filddle to N.F.L. The New York Times.
7.
ChenK.-P. (2003). Sabotage in promotion tournaments. Journal of Law and Economics, 19, 119–140.
8.
DepkenC.IIWilsonD. (2004). The efficiency of the NASCAR reward system: Initial empirical evidence. Journal of Sports Economics, 5, 371–386.
9.
EhrenbergR. G.BognannoM. L. (1990). Do tournaments have incentive effects?Journal of Political Economy, 98, 1307–1324.
10.
FrickB., (2003). Contest theory and sport. Oxford Review of Economic Policy, 19, 512–529.
GroothuisP.GroothuisJ. (2008). Nepotism in NASCAR. Journal of Sports Economics, 9, 250–265.
14.
HagstromR. G. (1998). The NASCAR way. New York, NY: John Wiley.
15.
HarbringC.IrlenbuschB. (2003). An experimental study on tournament design. Labour Economics, 10, 443–464.
16.
HarbringC.IrlenbuschB. (2008). How many winners are good to have?On tournaments and sabotage. Journal of Economic Behavior and Organization, 65, 682–702.
17.
HoodM. (2008). Consistency on the PGA tour. Journal of Sports Economics, 9, 504–519.
18.
HvideH. (2002). Tournament rewards and risk taking. Journal of Labor Economics, 20, 877–898.
KahnL. M. (2000). The sports business as a labor market laboratory. Journal of Economic Perspectives, 14, 75–94.
21.
KaleJ.ReisE.VenkateswaranA. (2009). Rank order tournaments and incentive alignment: The effect on firm performance. Journal of Finance, 64, 1479–1512.
22.
LazearE. P.RosenS. (1981). Rank-order tournaments as optimum labor contracts. Journal of Political Economy, 89, 841–864.
23.
LynchJ. G.ZaxJ. S. (2000). The rewards to running. Journal of Sports Economics, 1, 323–340.
24.
MalcolmsonJ. M. (1984). Work incentives, hierarchy and internal labor markets. Journal of Political Economy, 92, 486–507.
25.
MaloneyM.McCormickR. E. (2000). The response of workers to wages in tournaments: Evidence from foot races. Journal of Sports Economics, 1, 99–123.
26.
MeltonM.ZornT. (2000). An empirical test of tournament theory: The senior PGA Tour. Managerial Finance, 26, 16–32.
27.
PrendergastC. (1998). The provision of incentives in firms. Journal of Economic Literature, 37, 7–63.
28.
PruittS. W.CornwellT. B.ClarkJ. M. (2004). The NASCAR phenomenon: Auto racing sponsorships and shareholder wealth. Journal of Advertising Research, 44, 281–296.
29.
RonfeldtD. (1999). Social Science at 190 MPH on NASCAR’s Biggest Superspeedways. First Monday, 5, 1–27.
30.
RosenS. (1988). Promotions, elections and other contests. Journal of Institutional and Theoretical Economics, 144, 73–90.
31.
SchwartzJ.IsaacsJ.CarilliA. (2007). To race or place? An empirical investigation of efficiency of the NASCAR points competition. Journal of Sports Economics, 8, 633–641.
32.
von AllmenP. (2001). Is the reward system in NASCAR Efficient?Journal of Sports Economics, 2, 62–79.