In a tournament competitors may cheat to gain an advantage. This paper considers the problem of deterrence and finds that tournaments reflect special circumstances that are not present in a traditional model of law enforcement. The traditional model considers sanctions and monitoring as the instruments of deterrence. In a tournament the prize structure plays a critical role in determining both the costs and benefits to cheating. We consider ways in which the pride structure can be manipulated in order to reduce monitoring costs. "We didn't get beat, we got out-milligrammed. And when you found out what they were taking, you started taking them." Tom House (former MLB pitcher) in USA Today
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Univ Arkansas, Sam M Walton Coll Business, Dept Econ, Fayetteville, AR 72701 USAUniv Arkansas, Sam M Walton Coll Business, Dept Econ, Fayetteville, AR 72701 USA
Kali, Raja
Pastoriza, David
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HEC Montreal, Dept Int Business, Chemin Cote St Catherine, Montreal, PQ, CanadaUniv Arkansas, Sam M Walton Coll Business, Dept Econ, Fayetteville, AR 72701 USA
Pastoriza, David
Plante, Jean-Francois
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HEC Montreal, Dept Decis Sci, Chemin Cote St Catherine, Montreal, PQ, CanadaUniv Arkansas, Sam M Walton Coll Business, Dept Econ, Fayetteville, AR 72701 USA