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Main Author: Seven, Mehmet Mars
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2410.19006
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author Seven, Mehmet Mars
author_facet Seven, Mehmet Mars
contents In this note, we introduce a novel performance rating system called Performance Rating Equilibrium (PRE). A PRE is a vector of ratings for each player, such that if these ratings were each player's initial rating at the start of a tournament, scoring the same points against the same opponents would leave each player's initial rating unchanged. In other words, all players' initial ratings perfectly predict their actual scores in the tournament. This property, however, does not hold for the well-known Tournament Performance Rating. PRE is defined as a fixed point of a multidimensional rating function. We show that such a fixed point, and hence a PRE, exists under mild conditions. We provide an implementation of PRE along with several empirical applications. PREs have broad applicability, from sports competitions to the evaluation of large language models.
format Preprint
id arxiv_https___arxiv_org_abs_2410_19006
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Performance Rating Equilibrium
Seven, Mehmet Mars
Theoretical Economics
In this note, we introduce a novel performance rating system called Performance Rating Equilibrium (PRE). A PRE is a vector of ratings for each player, such that if these ratings were each player's initial rating at the start of a tournament, scoring the same points against the same opponents would leave each player's initial rating unchanged. In other words, all players' initial ratings perfectly predict their actual scores in the tournament. This property, however, does not hold for the well-known Tournament Performance Rating. PRE is defined as a fixed point of a multidimensional rating function. We show that such a fixed point, and hence a PRE, exists under mild conditions. We provide an implementation of PRE along with several empirical applications. PREs have broad applicability, from sports competitions to the evaluation of large language models.
title Performance Rating Equilibrium
topic Theoretical Economics
url https://arxiv.org/abs/2410.19006