Chess pieces battle on a warped game board.

Level Up Your Game: How Understanding Competition Can Help You Win

Avery Sinclair in Business & Economy August 2025 • 4 min read.

"New research reveals the hidden dynamics of tournaments and contests, and how you can use them to your advantage."

From the boardroom to the playing field, competitions are everywhere. Whether it's a sales contest at work, an innovation tournament, or a local sports league, these events are designed to push us to perform our best. But what if the very structure of these competitions is working against some of us? A new study dives deep into the dynamics of tournaments, revealing how differences in skill and perceived abilities can dramatically impact performance, and what you can do about it. Think of it as a playbook for anyone who wants to understand the hidden forces at play in any competition, whether you're organizing it or trying to win it.

Tournaments, as incentive mechanisms, are used to promote science and innovation in business, politics, and sports. The goal is to select specific contest rules, prize structures, and contestant compositions, this strategy helps to align with the goals.

To understand the influence of contestant ability and relative abilities and how it affects performance, darts tournament were evaluated and is presented as data. It revealed a critical parameter, relative abilities of the contestants affect performance. In competitions with one or two players, the contestant with lower ability has reduced incentives to exert high effort due to a diminished probability of winning the reward, leading to lower performance levels. The contestants with higher ability, in turn, reduce effort because they anticipate the drop in performance of the contestants with lower ability.

The Skill Gap: How Uneven Playing Fields Impact Performance

Chess pieces battle on a warped game board.

The research confirms a long-held belief: when there's a significant skill gap between competitors, the lower-ability contestant tends to perform worse. It's a discouraging effect – like knowing you're facing an uphill battle. What's fascinating is that even moderate skill differences can trigger this, not just extreme mismatches.

But here's where it gets interesting. Contrary to what you might expect, the higher-ability contestant doesn't necessarily coast to an easy victory. In fact, their performance can actually improve, particularly in the early stages of the competition. It's as if they're rising to the challenge, especially when they're among the top talents in the pool. This positive effect, however, isn't consistent throughout the entire competition.

The Discouragement Effect: A lower-skilled contestant's performance decreases as a result of ability heterogeneity.
Rising to the Occasion: A higher-skilled contestant will rise to the occasion when in competition with lower skilled contestants.
Early Competition: A contestant's actions or performance may change depending on course of contest.

Interestingly, when diving deeper into the timing, contestants will modify behaviors according to course and length of events, specifically, 'heterogeneity is defined before the contest begins. Thus, the first half of the contest, in particular, should be informative about immediate responses to contestant ability heterogeneity. In contrast, match dynamics may also affect effects in the second half.'

Turning Insights into Action

The next time you find yourself in a competitive situation, remember that the playing field might not be as level as it appears. Recognizing these hidden dynamics can help you adjust your strategy, whether you're striving for victory or designing a contest that brings out the best in everyone.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2401.0521,

Title: Tournaments, Contestant Heterogeneity And Performance

Subject: econ.gn q-fin.ec

Authors: Enzo Brox, Daniel Goller

Published: 10-01-2024

Everything You Need To Know

What is the 'Discouragement Effect' in competitions, and how does it affect contestants?

The 'Discouragement Effect' describes how a lower-skilled contestant's performance decreases when they face higher-ability opponents. Knowing they are at a disadvantage reduces their incentive to exert effort, leading to diminished performance. This effect highlights how the skill gap can negatively impact motivation and outcomes for less skilled participants. The research suggests that even moderate skill differences, not just extreme mismatches, can trigger this phenomenon. Contestants should be aware of this effect and adjust strategies according to the opponents. The effect does not speak to the affect of being encouraged by team members or others.

How does the ability of contestants affect their performance in a tournament, according to research?

Research indicates that the relative abilities of contestants significantly influence performance. Lower-ability contestants tend to decrease their effort due to a reduced probability of winning, whereas higher-ability contestants may initially improve their performance, especially when among top talents. This early improvement demonstrates 'Rising to the Occasion.' However, this positive effect may not sustain throughout the entire competition. These dynamics show that perceived ability differences can significantly alter contestant behavior and overall competition outcomes. This research did not consider the willingness of contestants to take risk.

What does 'Rising to the Occasion' mean in the context of competitive events, and when is it most likely to occur?

'Rising to the Occasion' describes how higher-skilled contestants can improve their performance when competing against lower-skilled opponents. This effect is more pronounced in the early stages of a competition, suggesting that top talents are initially motivated to perform better when they perceive a skill difference. This effect emphasizes the psychological impact of competition, where the presence of less skilled contestants can spur higher-ability individuals to enhance their efforts and demonstrate their superiority. The research did not measure the change to performance based on the number of contestants.

In what ways can understanding the dynamics of competitions, such as 'Discouragement Effect' and 'Rising to the Occasion,' be beneficial?

Recognizing dynamics like the 'Discouragement Effect' and 'Rising to the Occasion' can help in several ways. For contestants, it allows them to adjust their strategies based on the perceived skill levels of their opponents. For organizers, it informs the design of contests to ensure fair competition and encourage optimal performance from all participants. Understanding these hidden forces at play enables a more strategic approach, whether the goal is to win or to create a competitive environment that brings out the best in everyone. The study could be enhanced with the addition of different competition types.

How do contestant's actions or performance change during the course of a competition?

Contestants modify their behaviors depending on the course and length of the event. 'Heterogeneity' is defined before the contest begins, therefore the first half of the competition provides immediate responses to contestant ability. The second half of the competition may show altered performance based on match dynamics. Contestants may become more aggressive, conservative, or strategic depending on their initial results and observations of their competitors' performance. Such adaptations demonstrate that competition is not static; contestant behavior is dynamic and evolving during the competition.