The effort effects of prizes in the second half of tournaments

The theory of tournaments predicts that a worker's effort depends on the difference between the winning and losing prizes, as well as the degree that increases in effort affect the probability of winning. This paper tests these predictions using a data set from Arabian horse racing. Jockeys increase their efforts (lower their times) in the second half of races when the amount of prize money lost by dropping a place is greater and when there is less distance between them and their closest competitors. These findings are consistent with the theory.