Harbaugh, Rick; Klumpp, Tilman - In: Economic Inquiry 43 (2005) 2, pp. 316-329
In equilibrium play of a two-round tournament, we find that underdogs exert more effort in the opening round whereas favorites save more effort for the final. Ability differences are therefore compressed in the opening round so upsets are more likely and amplified in the final so blowouts are...