A Renewed Analysis of Cheating in Contests: Theory and Evidence from Recovery Doping.

Summary In rank-order tournaments, players have incentives to cheat in order to increase their probability of winning the prize. Usually, cheating is seen as a technology that allows individuals to illegally increase their best potential performances. This paper argues that cheating can alternatively be seen as a technology that ensures that the best performances are reached more often. We call this technology recovery doping and show that it yields new insights on the effects of cheating: recovery doping lowers performance uncertainty, thereby changing the outcome of the contest in favour of the best players. We develop this theory in a game with player heterogeneity and performance uncertainty and then study the results of the cross-country skiing World Cup between 1987 and 2006. In line with our theoretical predictions, race-specific rankings were remarkably stable during the 1990s, subsequently becoming more volatile. This pattern reflects the rise and fall of synthetic EPO and the emergence of blood testing and profiling.