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An empirical test of tournament theory: the Senior PGA Tour

Michael Melton (Assistant Professor of Finance, University of Southern Mississippi, Hattiesburg )
Thomas S. Zorn (Professor of Finance, University of Nebraska‐Lincoln, Lincoln)

Managerial Finance

ISSN: 0307-4358

Article publication date: 1 July 2000



Using data from the Senior PGA Tours we analyze the incentive effects of rank order tournaments. Previous studies using data from the PGA Tour reached conflicting conclusions. To resolve the issue, the Senior PGA Tour was chosen for its unique format where players are not cut from the tournament before completion, eliminating any survival bias. The findings support the hypothesis that the level of prizes in Senior PGA tournaments influences players’ performance, indicating that tournaments can be used to motivate performance.



Melton, M. and Zorn, T.S. (2000), "An empirical test of tournament theory: the Senior PGA Tour", Managerial Finance, Vol. 26 No. 7, pp. 16-32.




Copyright © 2000, MCB UP Limited

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