Competition and Fatigue

Wed, 11/13/2019 - 12:00 / 14:00

207, Viale Romania, 32

Speaker: Vera Angelova , Technische Universität Berlin

Abstract:

Fatigue is an established empirical phenomenon. However, far too little is known about the role offatigue in dynamic competitive environments. We study how subjects deal with fatigue in a sequence oftournaments that are linked through fatigue spillovers, inducing a non-time-separable decision problem.Our theoretical model allows us to vary incentives and the ease of recovery. Making recovery hardershould, generally, reduce e↵ort. This prediction is supported by our experimental data. A short-termincrease in incentives in one tournament should lead to higher e↵ort in that tournament, and, due tofatigue, to strategic resting before and after. Our experimental results confirm the former, and we findsome evidence for the latter. Even in the presence of fatigue, total e↵ort should positively respond tohigher-powered incentives. This is not supported by our data. Removing fatigue, we find the expectedincrease in total e↵ort.