Strategic Effort and Bandwagon Effects in Finite Multi-Stage Games with Non-Linear Externalities: Evidence from Triathlon

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Autore principale: Reichel, Felix
Natura: Preprint
Pubblicazione: 2025
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author Reichel, Felix
author_facet Reichel, Felix
contents This paper examines strategic effort and positioning choices resulting in bandwagon effects under externalities in finite multi-stage games using causal evidence from triathlon (Reichel, 2025). Focusing on open-water swim drafting where athletes reduce drag most effectively by swimming directly behind peerswe estimate its performance effects through a structural contest framework with endogenous, deterministic effort and drafting position. Leveraging exogenous variation from COVID-19 drafting bans in Austrian triathlons, we apply a panel leave-one-out (LOO/LOTO) peer ability instrumental variables (IV) strategy to isolate the causal non-linear effect of drafting. Results from restricted sample analysis and pooled estimated bandwagon IV effects show substantial and nonlinear gains: in small (group size below 10) drafting swim groups/clusters, each deeper position improves finishing rank on average by over 30%, with rapidly diminishing returns in larger groups. Leading however is consistently more costly than optimal positioning, aligning with theoretical predictions of energy expenditure (metabolic costs).
format Preprint
id arxiv_https___arxiv_org_abs_2505_03247
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Strategic Effort and Bandwagon Effects in Finite Multi-Stage Games with Non-Linear Externalities: Evidence from Triathlon
Reichel, Felix
General Economics
Economics
This paper examines strategic effort and positioning choices resulting in bandwagon effects under externalities in finite multi-stage games using causal evidence from triathlon (Reichel, 2025). Focusing on open-water swim drafting where athletes reduce drag most effectively by swimming directly behind peerswe estimate its performance effects through a structural contest framework with endogenous, deterministic effort and drafting position. Leveraging exogenous variation from COVID-19 drafting bans in Austrian triathlons, we apply a panel leave-one-out (LOO/LOTO) peer ability instrumental variables (IV) strategy to isolate the causal non-linear effect of drafting. Results from restricted sample analysis and pooled estimated bandwagon IV effects show substantial and nonlinear gains: in small (group size below 10) drafting swim groups/clusters, each deeper position improves finishing rank on average by over 30%, with rapidly diminishing returns in larger groups. Leading however is consistently more costly than optimal positioning, aligning with theoretical predictions of energy expenditure (metabolic costs).
title Strategic Effort and Bandwagon Effects in Finite Multi-Stage Games with Non-Linear Externalities: Evidence from Triathlon
topic General Economics
Economics
url https://arxiv.org/abs/2505.03247