Peer Effects In Sports: Evidence From NCAA Relay Teams

Abstract

This paper investigates whether disparity in team member quality impacts team production using NCAA 4x400m relay teams. As a measure of quality I use the team member's individual rankings. The net peer effects are estimated on a team level rather than on an individual level, and are found to have both an absolute and relative negative effect on the team performance. This paper is differentiated from the existing literature by using a direct measure of quality compared to other indirect measures of worker quality such as wages. The evidence provided herein shows that a greater disparity in team member quality increases NCAA relay team times, which suggests that net negative peer effects exist. These results support the "team cohesiveness hypothesis" for NCAA relay teams.