How do monetary and non-monetary incentives affect player performance on the PGA Tour?

Sammanfattning

This paper examines how monetary and non-monetary incentive structures affectplayer performance on the PGA Tour. Using a panel dataset of tournament resultsfrom 2018 to 2025 and fixed effects regression framework, performance iscompared across three tournament types: Regular Events, Signature Events, andMajor championships. The results show that players perform significantly worsein Major championships relative to Regular Events, with the decline concentratedin the final round, consistent with choking under pressure. No significantperformance difference is found for Signature Events despite their higher prizepools, suggesting that monetary incentives may have reached a ceiling effect atthe elite level. The findings emphasize the importance of legacy and prestigeincentives in tournaments and contribute to a more comprehensive view of howdifferent incentive types affect performance in high-stakes elite environments.