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Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Modeling Dynamic Incentives
an Application to Basketball Games
Arthur Charpentier1
, Nathalie Colombier2
& Romuald ´Elie3
1UQAM 2Universit´e de Rennes 1 & CREM 3Universit´e Paris Est & CREST
charpentier.arthur@uqam.ca
http ://freakonometrics.hypotheses.org/
GERAD Seminar, June 2014
1
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Why such an interest in basketball ?
Berger and Pope (2011) ‘Can Losing Lead to Winning ? ’ (preprint in 2009).
See also A Slight Deficit Can Actually Be an Edge nytimes.com, When Being
Down at Halftime Is a Good Thing, wsj.com, etc.
Focus on winning probability in basketball games, logistic regression
log
P[wini]
1 − P[wini]
= β0 + β1(score difference at half time)i + γT
Xi + εi
Xi is a matrix of control variables for game i s(e.g. home vs. visitor effect).
−40 −20 0 20 40
0.00.20.40.60.81.0
2
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Modeling dynamic incentives ?
They did focus on score at half time, but the original dataset had much more
information : score difference from halftime until the end (per minute).
=⇒ a dynamic model to understand when losing lead to losing
At the same time, talk on ‘Point Record Incentives, Moral Hazard and Dynamic
Data ’ by Dionne, Pinquet, Maurice & Vanasse (2011)
Study on incentive mechanisms for road safety, with time-dependent disutility of
effort.
3
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Agenda of the talk
• From basketball to labor economics
• Understanding the dynamics : modeling processes
◦ Long term dynamics (over a season)
◦ Short term dynamics (over a game)
• An optimal effort control problem
◦ A simple control problem
◦ Nash equilibrium of a stochastic game
◦ Numerical computations
• Understanding the dynamics : modeling processes
◦ The score difference process
◦ A proxy for the effort process
• Modeling the probability to win a game
4
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Incentives and tournament in labor economics
The pay schemes : Flat wage pay versus rank-order tournament (relative
performance evaluation).
Impact of relative performance evaluation, see Lazear (1989) :
• motivate employees to work harder
• demoralizing and create excessively competitive workplace
5
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Incentives and tournament in labor economics
For a given pay scheme : how intensively should the organization provide his
employees with information about their relative performance ?
• An employee who is informed he is an underdog
◦ may be discouraged and lower his performance
◦ works harder to preserve to avoid shame
• A frontrunner who learns that he is well ahead
◦ may think that he can afford to slack
◦ becomes more enthusiastic and increases his effort
6
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Incentives and tournament in labor economics
⇒ impact on overall perfomance ?
• Theoritical models conclude to a positive impact, see Lizzeri, Meyer &
Persico (2002), Ederer (2004)
• Empirical literature :
◦ if payment is independant of the other’s performance : positive impact to
observe each other’s effort, see Kandel & Lazear (1992).
◦ in relative performance (both tournament and piece rate) : does not lead
frontrunners to slack off but significantly reduces the performance of
underdogs (quantity vs. quality), see Eriksson, Poulsen & Villeval (2009).
7
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The dataset for 2008/2009 NBA match
8
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The dataset for 2008/2009 NBA match
Atlantic Division W L Northwest Division W L
Boston Celtics 62 20 Denver Nuggets 54 28
Philadelphia 76ers 41 41 Portland Trail Blazers 54 28
New Jersey Nets 34 48 Utah Jazz 48 34
Toronto Raptors 33 49 Minnesota Timberwolves 24 58
New York Knicks 32 50 Oklahoma City Thunder 23 59
DCentral Division W L Pacific Division W L
Cleveland Cavaliers 66 16 Los Angeles Lakers 65 17
Chicago Bulls 41 41 Phoenix Suns 46 36
Detroit Pistons 39 43 Golden State Warriors 29 53
Indiana Pacers 36 46 Los Angeles Clippers 19 63
Milwaukee Bucks 34 48 Sacramento Kings 17 65
SoutheastDivision W L Southwest Division W L
Orlando Magic 59 23 San Antonio Spurs 54 28
Atlanta Hawks 47 35 Houston Rockets 53 29
Miami Heat 43 39 Dallas Mavericks 50 32
Charlotte Bobcats 35 47 New Orleans Hornets 49 33
Washington Wizards 19 63 Memphis Grizzlies 24 58
9
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
A Brownian process to model the season (LT) ?
Variance of the process (t−1/2
St), (St) being the cumulated score over the season,
after t games (+1 winning, -1 losing)
time in the season t 20 games 40 games 60 games 80 games
Var t−1/2
St 3.627 5.496 7.23 9.428
(2.06,5.193) (3.122,7.87) (3.944,4.507) (3.296,3.766)
10
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
A Brownian process to model the season (LT) ?
q q
q q q q q q q q
q q q
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q q
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q q q
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q q q q q q q
q q q q q
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q q q q q q
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q q q q q q q
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q q q
0 20 40 60 80
02468101214
Var(
St
t
)
Time (t) in the season (number of games)
11
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
A Brownian process to model the score difference (ST) ?
Variance of the process (t−1/2
St), (St) being the score difference at time t.
time in the game t 12 min. 24 min. 36 min. 48 min.
Var t−1/2
St 5.010 4.196 4.21 3.519
(4.692,5.362) (3.930,4.491) (3.944,4.507) (3.296,3.766)
12
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
A Brownian process to model the score difference (ST) ?
q
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0 10 20 30 40
3.54.04.55.05.5
Var(
St
t
)
Time (t) in the game (in min.)
13
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The score difference as a controlled process
Let (St) denote the score difference, A wins if ST > 0 and B wins if ST < 0.
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0 10 20 30 40
−20−1001020
Time (min.)
Team A wins
Team B wins
q
The score difference can be driven by a diffusion dSt = µdt + σdWt
00
14
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The score difference as a controlled process
The score difference can be driven by a diffusion dSt = [µA − µB]dt + σdWt
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0 10 20 30 40
−20−1001020
Time (min.)
Team A wins
Team B wins
q
Here, µA < µB
15
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The score difference as a controlled process
The score difference can be driven by a diffusion dSt = [µA − µB]dt + σdWt
q
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0 10 20 30 40
−20−1001020
Time (min.)
Team A wins
Team B wins
q
q
difference
16
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The score difference as a controlled process
The score difference can be driven by a diffusion dSt = [µA − µB]dt + σdWt
q
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0 10 20 30 40
−20−1001020
Time (min.)
Team A wins
Team B wins
q
q
q
at time τ = 24min., team B can change its effort level, dSt = [µA − 0]dt + σdWt
17
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The score difference as a controlled process
The score difference can be driven by a diffusion dSt = [µA − 0]dt + σdWt
q
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0 10 20 30 40
−20−1001020
Time (min.)
Team A wins
Team B wins
q
q
q
q
at time τ = 36min., team B can change its effort level, dSt = [µA − µB]dt + σdWt
difference
18
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The score difference as a controlled process
The score difference is now driven by a diffusion dSt = [µA − µB]dt + σdWt
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0 10 20 30 40
−20−1001020
Time (min.)
Team A wins
Team B wins
q
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q
19
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Introducing the effort as a control process
There are two players (teams), 1 and 2, playing a game over a period [0, T]. Let
(St) denote the score difference (in favor of team 1 w.r.t. team 2)
• team 1 : max
(u1)∈U1
E [1(ST > 0)] +
T
τ
e−δ1t
L1(α1 − u1,t) dt
• team 2 : max
(u2)∈U2
E [1(ST < 0)] +
T
τ
e−δ2t
L2(α2 − u2,t) dt
where (St) is a stochastic process driven by
dSt = [u1(St) − u2(St)]dt + σdWt on [0, T].
20
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Introducing the effort as a control process
There are two players (teams), 1 and 2, playing a game over a period [0, T]. Let
(St) denote the score difference (in favor of team 1 w.r.t. team 2)
• team 1 : max
(u1)∈U1
E [1(ST > 0)] +
T
τ
e−δ1t
L1(α1 − u1,t) dt
• team 2 : max
(u2)∈U2
E [1(ST < 0)] +
T
τ
e−δ2t
L2(α2 − u2,t) dt
where (St) is a stochastic process driven by
dSt = [u1(St) − u2(St)]dt + σdWt on [0, T].
21
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
An optimal control stochastic game
There are two players (teams), 1 and 2, playing a game over a period [0, T]. Let
(St) denote the score difference (in favor of team 1 w.r.t. team 2)
• team 1 : u1,τ ∈ argmax
(u1)∈U1
E [1(ST > 0)] +
T
τ
e−δ1t
L1(α1 − u1,t(St)) dt
• team 2 : u2,τ ∈ argmax
(u2)∈U2
E [1(ST < 0)] +
T
τ
e−δ2t
L2(α2 − u2,t(St)) dt
where (St) is a stochastic process driven by
dSt = [u1,t(St) − u2,t(St)]dt + σdWt on [0, T].
=⇒ non-cooperative stochastic (dynamic) game with 2 players and non-null sum
22
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
An optimal control problem
Consider now not a game, but a standard optimal control problem, where an
agent faces the optimization program
max
(ut)t∈[τ,T ]
E 1(ST > 0) +
T
τ
e−δt
L(α − ut)dt ,
with dSt =



udt + σdWt if ut = u (= u > 0)
udt + σdWt if ut = u (= 0)
where L is an increasing convex utility function, with α > 0, and δ > 0.
Consider a two-value effort model,
• if ut = 0, there is fixed utility L(α)
• if ut = u > 0, there an decrease of utility L(α − u) < L(α), but also an
increase of P(ST > 0) since the stochastic diffusion now has a positive drift.
23
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
When should a team stop playing (with high effort) ?
The team starts playing with a high effort (u), and then, stop effort at some time
τ : utility gains exceed changes in the probability to win, i.e.
T
τ
e−δt
L(α − u)dt + P(ST > 0|Sτ , positive drift on [τ, T])
>
T
τ
e−δt
L(α)dt + P(ST > 0|Sτ , no drift on [τ, T])
Recall that, if Z = ST − Sτ
P(ST > 0|Sτ = d, no drift on [τ, T]) = P(Z > −d|Z ∼ N(0, σ
√
T − τ))
P(ST > 0|Sτ = d, drift on [τ, T]) = P(Z > −d|Z ∼ N(u[T − τ], σ
√
T − τ))
where µ =
1
2
u.
24
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Thus, the difference between those two probabilities is
Φ
d
σ [T − τ]
− Φ
d + [T − τ]u
σ [T − τ]
Thus, the optimal time τ is solution of
[L(α − u) − L(α)]
[e−δτ
− e−δT
]
δ
≈T −τ
= Φ
d
σ [T − τ]
− Φ
d + [T − τ]u
σ [T − τ]
.
i.e.
τ = h(d, λ, u, L, σ).
Thus, the optimal time to stop playing with hight effort (as a function of the
remaining time T − τ and the score difference d) is the following region,
25
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Region where teams stop making (high) efforts
0 10 20 30 40
−15−10−5051015
Obviously, it is too simple.... we need to consider a non-cooperative game.
26
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Optimal strategy on a discretized version of the game
Assume that controls u1 and u2 are discrete, taking values in a set U. Since we
consider a non-null sum game, Nash equilibrium have to be searched in extremal
points of polytopes of payoff matrices (see ).
Looking for Nash equilibriums might not be a great strategy
Here, (u1, u2) is solution of maxmin problems
u1 ∈ argmax
u1∈U
min
u2∈U
J1(u1, u2) and u2 ∈ argmax
u2∈U
min
u1∈U
J2(u1, u2)
where J functions are payoffs.
27
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
Let (St)t∈[0,T ] denote the score difference over the game,
dSt = (u1(St ) − u2(St ))dt + dWt
28
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
At time τ ∈ [0, T), given Sτ = x, player 1 seeks an optimal strategy,
u1,τ (x) ∈ argmax
u1∈U
min
u2∈U
E α11(ST > 0) +
T
τ
L1(u1,s(Ss ))ds
29
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
At time τ ∈ [0, T), given Sτ = x, player 1 seeks an optimal strategy,
u1,τ (x) ∈ argmax
u1∈U
min
u2∈U
E α11(ST > 0) +
τ+h
τ
L1(u1)ds +
T
τ+h
L1(u1,s(Ss ))ds
30
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
Consider a discretization of [0, T] so that optimal controls can be updated at
times tk where 0 = t0 ≤ t1 ≤ t2 ≤ · · · ≤ tn−2 ≤ tn−1 ≤ tn = T.
We solve the problem backward, starting at time tn−1.
31
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
q
q
q
Given controls (u1, u2) , Stn
= Stn−1
+ [u1 − u2](tn − tn−1) + εn, where Stn−1
= x.
u1,n−1(x) ∈ argmax
u1∈U
min
u2∈U
J1(u1, u2) where J1(u1, u2) is the sum of two terms,
P(Stn > 0|Stn−1 = x) = s∈S+
P(Stn
= s|Stn−1
= x) and L1(u1).
32
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
q
q
q
q
q
q
q
Stn
= Stn−2
+ [u1 − u2](tn−1 − tn−2) + εn−1
Stn−1
+[u1,n−1−u2,n−1(Stn−1
)](tn−tn−1)+εn,
where Stn−2
= x. Here u1,n−2(x) ∈ argmax
u1∈U
min
u2∈U
J1(u1, u2) , where J1(u1, u2)...
33
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
q
q
q
q
q
q
q
... is the sum of two terms, based on
P(Stn
= y|Stn−2
= x) =
s∈S
P(Stn
= y|Stn−1
= s)
function of (u1,n−1(s),u2,n−1(s))
· P(Stn−1
= s|Stn−2
= x)
function of (u1,u2)
34
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
q
q
q
q
q
q
q
... one term is P(Stn
> 0|Stn−2
= x) (as before), the sum of L1(u1) and
E(L1(u1,n−1)) =
s∈S
L1(u1,n−1(s)) · P(Stn−1
= s|Stn−2
= x)
35
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
q q
q
q
q
q
q
q
Stn
= Stn−3
+ [u1 − u2]dt + εn−2
Stn−2
+[u1,n−2 − u2,n−2(Stn−2
)]dt + εn−1
Stn−1
+[u1,n−1 − u2,n−1(Stn−1 )]dt + εn with Stn−3 = x.
36
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
q q
q
q
q
q
q
q
P(Stn
= y|Stn−3
= x) =
s1,s2∈S
P(Stn
= y|Stn−1
= s2)
function of (u1,n−1(s2),u2,n−1(s2))
· P(Stn−1
= s2|Stn−2
= s1)
function of (u1,n−2(s1),u2,n−2(s1))
· P(Stn−2
= s2|Stn−3
= s1)
function of (u1,u2)
37
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Discretized version of the stochastic game
0 10 20 30 40
−10−50510
q
q q
q
q
q
q
q
q
Based on those probabilities, we have P(Stn
> 0|Stn−3
= x) and the second term
is the sum of L1(u1) and E(L1(u1,n−2) + L1(u1,n−1)) i.e.
s∈S
L1(u1,n−2(s)) · P(Stn−2
= s|Stn−3
= x) +
s∈S
L1(u1,n−1(s)) · P(Stn−1
= s|Stn−3
= x)
38
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Numerical computation of the discretized game
team 1 on the left vs team 2 on the right : low effort high effort
(simple numerical application, with #U = 60 and n = 12)
T
τ
e−δ(s−τ)
ds }
q
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
39
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Numerical computation of the discretized game
team 1 on the left vs team 2 on the right : low effort high effort α1 ↑
u1,τ (x) ∈ argmax
u1∈U
min
u2∈U
E α11(ST > 0) +
T
τ
e−δ1(s−τ)
(b1 − u1,s(Ss ))γ1
ds
q
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
40
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Numerical computation of the discretized game
team 1 on the left vs team 2 on the right : low effort high effort b1 ↑
u1,τ (x) ∈ argmax
u1∈U
min
u2∈U
E α11(ST > 0) +
T
τ
e−δ1(s−τ)
(b1 − u1,s(Ss ))γ1
ds
q
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
41
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Numerical computation of the discretized game
team 1 on the left vs team 2 on the right : low effort high effort γ1 ↑
u1,τ (x) ∈ argmax
u1∈U
min
u2∈U
E α11(ST > 0) +
T
τ
e−δ1(s−τ)
(b1 − u1,s(Ss ))γ1
ds
q
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
42
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Numerical computation of the discretized game
team 1 on the left vs team 2 on the right : low effort high effort δ1 ↑
u1,τ (x) ∈ argmax
u1∈U
min
u2∈U
E α11(ST > 0) +
T
τ
e−δ1(s−τ)
(b1 − u1,s(Ss ))γ1
ds
q
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
q
q
0.0 0.2 0.4 0.6 0.8 1.0
−20−1001020
43
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Description of the dataset
GameID LineNumber TimeRemaining Entry
20081028CLEBOS 1 00:48:00 Start of 1st Quarter
20081028CLEBOS 2 00:48:00 Jump Ball Perkins vs Ilgauskas
20081028CLEBOS 3 00:47:40 [BOS] Rondo Foul:Shooting (1 PF)
20081028CLEBOS 4 00:47:40 [CLE 1-0] West Free Throw 1 of 2 (1 PTS)
20081028CLEBOS 5 00:47:40 [CLE 2-0] West Free Throw 2 of 2 (2 PTS)
20081028CLEBOS 6 00:47:30 [BOS] Garnett Jump Shot: Missed
20081028CLEBOS 7 00:47:28 [CLE] James Rebound (Off:0 Def:1)
20081028CLEBOS 8 00:47:22 [CLE 4-0] James Pullup Jump shot: Made (2 PTS)
20081028CLEBOS 9 00:47:06 [BOS 2-4] Pierce Slam Dunk Shot: Made (2 PTS) Assist: Rondo (1 AST)
20081028CLEBOS 10 00:46:57 [CLE] James 3pt Shot: Missed
20081028CLEBOS 11 00:46:56 [BOS] R. Allen Rebound (Off:0 Def:1)
20081028CLEBOS 12 00:46:47 [BOS 4-4] Garnett Slam Dunk Shot: Made (2 PTS) Assist: Rondo (2 AST)
20081028CLEBOS 13 00:46:24 [CLE 6-4] Ilgauskas Driving Layup Shot: Made (2 PTS) Assist: James (1 AST)
20081028CLEBOS 14 00:46:13 [BOS] Garnett Jump Shot: Missed
20081028CLEBOS 15 00:46:11 [BOS] Perkins Rebound (Off:1 Def:0)
20081028CLEBOS 16 00:46:08 [BOS] Pierce 3pt Shot: Missed
20081028CLEBOS 17 00:46:06 [CLE] Ilgauskas Rebound (Off:0 Def:1)
20081028CLEBOS 18 00:45:52 [CLE] M. Williams Layup Shot: Missed
20081028CLEBOS 19 00:45:51 [BOS] Garnett Rebound (Off:0 Def:1)
20081028CLEBOS 20 00:45:46 [BOS] R. Allen Layup Shot: Missed Block: James (1 BLK)
20081028CLEBOS 21 00:45:44 [CLE] West Rebound (Off:0 Def:1)
44
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Description of the dataset
GameID LineNumber TimeRemaining Entry
20081028CLEBOS 1 00:48:00 Start of 1st Quarter
20081028CLEBOS 2 00:48:00 Jump Ball Perkins vs Ilgauskas
20081028CLEBOS 3 00:47:40 [BOS] Rondo Foul:Shooting (1 PF)
20081028CLEBOS 4 00:47:40 [CLE 1-0] West Free Throw 1 of 2 (1 PTS)
20081028CLEBOS 5 00:47:40 [CLE 2-0] West Free Throw 2 of 2 (2 PTS)
20081028CLEBOS 6 00:47:30 [BOS] Garnett Jump Shot: Missed
20081028CLEBOS 7 00:47:28 [CLE] James Rebound (Off:0 Def:1)
20081028CLEBOS 8 00:47:22 [CLE 4-0] James Pullup Jump shot: Made (2 PTS)
20081028CLEBOS 9 00:47:06 [BOS 2-4] Pierce Slam Dunk Shot: Made (2 PTS) Assist: Rondo (1 AST)
20081028CLEBOS 10 00:46:57 [CLE] James 3pt Shot: Missed
20081028CLEBOS 11 00:46:56 [BOS] R. Allen Rebound (Off:0 Def:1)
20081028CLEBOS 12 00:46:47 [BOS 4-4] Garnett Slam Dunk Shot: Made (2 PTS) Assist: Rondo (2 AST)
20081028CLEBOS 13 00:46:24 [CLE 6-4] Ilgauskas Driving Layup Shot: Made (2 PTS) Assist: James (1 AST)
20081028CLEBOS 14 00:46:13 [BOS] Garnett Jump Shot: Missed
20081028CLEBOS 15 00:46:11 [BOS] Perkins Rebound (Off:1 Def:0)
20081028CLEBOS 16 00:46:08 [BOS] Pierce 3pt Shot: Missed
20081028CLEBOS 17 00:46:06 [CLE] Ilgauskas Rebound (Off:0 Def:1)
20081028CLEBOS 18 00:45:52 [CLE] M. Williams Layup Shot: Missed
20081028CLEBOS 19 00:45:51 [BOS] Garnett Rebound (Off:0 Def:1)
20081028CLEBOS 20 00:45:46 [BOS] R. Allen Layup Shot: Missed Block: James (1 BLK)
20081028CLEBOS 21 00:45:44 [CLE] West Rebound (Off:0 Def:1)
45
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Homogeneity of the scoring process
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Winning team (end of the game)
Losing team
46
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The scoring process : ex post analysis of the score
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Winning team (end of the first quarter)
Losing team
47
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The scoring process : ex post analysis of the score
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Winning team (end of the second quarter)
Losing team
48
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The scoring process : ex post analysis of the score
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Winning team (end of the third quarter)
Losing team
49
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The scoring process : home versus visitor
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Home team
Visitor team
50
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
The scoring process : team strategies ?
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Team : Clevaland Cavaliers
All teams
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Team : Oklahoma City Thunder
All teams
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Team : Los Angeles Lakers
All teams
0 10 20 30 40
0.450.500.550.60
Time in the game
Numberofpointsscored(/15sec.)
Team : Sacramento Kings
All teams
51
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Effect of explanatory variables ?
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
Number of victories − 2007/2008
Numberofvictories−2008/2009
ATL
BOS
CLE
DAL
DEN
DET
HOU
LAL
NOH
ORL
PHI
PHO
SAS
TOR
UTA
WAS
CHA
CHI
GSW
IND
LAC
MEN
MIA
MIL
MIN
NJN
NYK
POR
SAC
20 30 40 50 60
2030405060
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
Rank of the team − 2007/2008
Rankoftheteam−2008/2009
ATL
BOS
CLE
DAL
DEN
DET
HOU
LAL
NOH
ORL
PHI
PHO
SAS
TOR
UTA
WAS
CHA
CHI
GSW
IND
LAC
MEN
MIA
MIL
MIN
NJN
NYK
POR
SAC
30 25 20 15 10 5 0302520151050
cf. Galton’s regression to the mean.
52
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Winning as a function of time and score difference
Following the idea of Berger and Pope (2009),
logit[p(s, t)] = log
p
1 − p
= β0 + β1s + β2(T − t)+xT
γ
(simple linear model)
points difference
timeinthegame(minutes)
Y1
Winning probability (difference>0)
−15 −10 −5 0 5 10 15
010203040
Winning probability (difference>0)
points difference
timeinthegame(minutes)
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.5
53
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Winning as a function of time and score difference
a natural extention
logit[p(s, t)] = log
p
1 − p
= β0 + ϕ1[s] + ϕ2[T − t]+xT
γ
(simple additive model)
points difference
timeinthegame(minutes)
Y2
Winning probability (difference>0)
−15 −10 −5 0 5 10 15
010203040
Winning probability (difference>0)
points difference
timeinthegame(minutes)
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.5
54
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Winning as a function of time and score difference
or more generally
logit[p(s, t)] = log
p
1 − p
= β0 + ϕ1[s, T − t]+xT
γ
(functional nonlinear model)
points difference
timeinthegame(minutes)
Y3
Winning probability (difference>0)
−15 −10 −5 0 5 10 15
010203040
Winning probability (difference>0)
points difference
timeinthegame(minutes)
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.5
55
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Winning as a function of time and score difference
qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 24 mins.)
WinningProbability
qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 28 mins.)
WinningProbability
qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 32 mins.)
WinningProbability
qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 36 mins.)
WinningProbability
qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 40 mins.)
WinningProbability
qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 42 mins.)
WinningProbability
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 24 mins.)
WinningProbability
Home teams
All teams
Visitor teams
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 28 mins.)
WinningProbability
Home teams
All teams
Visitor teams
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 32 mins.)
WinningProbability
Home teams
All teams
Visitor teams
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 36 mins.)
WinningProbability
Home teams
All teams
Visitor teams
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 40 mins.)
WinningProbability
Home teams
All teams
Visitor teams
−20 −10 0 10 20
0.00.20.40.60.81.0
Score Difference (after 42 mins.)
WinningProbability
Home teams
All teams
Visitor teams
56
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Smooth estimation, versus raw data
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
−20 −10 0 10 20
010203040
Points difference
Time
−20 −10 0 10 20
010203040
Points difference
Time
57
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Smooth estimation, versus raw data
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
−20 −10 0 10 20
010203040
Points difference
Time
0.1
0.2
0.30.4
0.5
0.6
0.7
0.8
0.9
0.5
−20 −10 0 10 20
010203040
Points difference
Time
0.1
0.2
0.30.4
0.5
0.60.7
0.80.9
0.5
58
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
Do teams update their effort ?
−15 −10 −5 0 5 10 15
15202530354045
score difference
time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.1
0.20.3
0.4
0.6
0.7
0.8
0.9
59
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
When do teams stop their effort ?
when teams are about to win (90% chance)
−15 −10 −5 0 5 10 15
15202530354045
score difference
time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.9
Time
15202530354045
Winning probability=0.9
60
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
When do teams stop their effort ?
(with a more accurate estimation of the change in the slope)
−15 −10 −5 0 5 10 15
15202530354045
score difference
time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.9
Time
15202530354045
Winning probability=0.9
61
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
When do teams stop their effort ?
when teams are about to win (80% chance)
−15 −10 −5 0 5 10 15
15202530354045
score difference
time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.8
Time
15202530354045
Winning probability=0.8
62
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
When do teams stop their effort ?
when teams are about to win (70% chance)
−15 −10 −5 0 5 10 15
15202530354045
score difference
time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.7
Time
15202530354045
Winning probability=0.7
63
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
When do teams stop their effort ?
when teams are about to loose (20% chance to win)
−15 −10 −5 0 5 10 15
15202530354045
score difference
time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.2
Time
15202530354045
Winning probability=0.2
64
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
When do teams stop their effort ?
when teams are about to loose (10% chance to win)
−15 −10 −5 0 5 10 15
15202530354045
score difference
time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.1
Time
15202530354045
Winning probability=0.1
65
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
NBA players are professionals....
Here are winning probability, college (left) versus NBA (right),
−10 −5 0 5 10
2025303540
Points difference
Time
0.1
0.2
0.3
0.4
0.6
0.7
0.8
0.9
−10 −5 0 5 10
2530354045
Points difference
Time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.5
66
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
NBA players are professionals....
... when they play at home, college (left) versus NBA (right),
−10 −5 0 5 10
2025303540
Points difference
Time
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
0.5
−10 −5 0 5 10
2530354045
Points difference
Time
0.1
0.2
0.3
0.4
0.5
0.60.7
0.8
0.9
0.5
67
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
On covariates, and proxy for the effort
q q
q
q
q
q q
q
q
q
q
q
q
q
q
q
q
q
qq
q
qq
q
q q
q
q qqq
q
q
q
q q
qq
q
q
q
q q
q
q
q
q
qq
qq
q
qq
qq q q
q
qqq
q
q q q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
q
qq
q
q
q
q
q
qq q
q
q
q
q
qq
q
q
q q
q
q
q
q
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−15 −10 −5 0 5 10 15
2.02.22.42.62.83.0
Score Difference (beginning 3rd period)
Numberoffaults(first2minutes)
q qq qqq q qqqqq qq qqq q q q qq qq q qq qq qq qq qqq qqq qqq qq qqq qq qq qq q q qqq qq qq qqq q qq q qqqq qq qq q q qqq qq qq q qqq qq q qq qq q qq qq qq qqq q q qq qq qq qqq q qqq qq qqqq qq q qq q qq q qq q qqq qqq qqq qq q qqq q qqq qq qqq qqq q qq q qq qq qqq qq q qqq q qq qq q q qqq qq qq q q qq qqq qqqq qq q qqq qqq q qq q qq qq q qq q qq qqq qq qqq qq qq qq q qqq q qq qq qqq qq q qq qq qq qqq qqqq qq qq q qqq q qqq qq qqq qq qq qqqq qqq qq qq q qq qq qqqq qq qqq qq q q q qq qq qqq qq q qqq qq qqq q qq qq qq qq qq qqq qq qqqq q qqqq qqq qq q q qqqqq q qq qq qqq qqqqq q q qqq qqq q qq q q qq qqq qq q qq qqq q qq q qqq qq q qq q q qqqq qqq qq qqq qq qqq qqq qqq q qq qq qq q qq qq q q qq qqq qq qqq q q qqq qqq qq q qq qqqq qqq q qq q qq q qq qqq qq qq q qqqqq qq qq qqq q qq q qq qq qq qq q qq q qqqqqqq qq q qq q qq qq qq q q qq q qq qq q qqq qq qq qq q qq qq q qq qq qq qqq qqq qq qq qq qqqq
−15 −10 −5 0 5 10 15
0.500.550.600.650.700.750.800.85
Score Difference (beginning 3rd period)
Number3ptsshots(first2minutes)
q
qq
qqq
q
q
q
qq
q
q
q
q
qq
q q
q
q q
q
q
q
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2.02.22.42.62.83.0
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−15 −10 −5 0 5 10 15
0.500.550.600.650.700.750.800.85
Score Difference (beginning 4th period)
Number3ptsshots(first2minutes)
68
Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games
References
Arkes, J. (2011). Do gamblers correctly price momentum in NBA betting markets. Journal of Prediction Markets 5 (1),
31–50
Arkes, J. & Martinez, J. (2011). Evidence for a Momentum Effect in the NBA. Journal of Quantitative Analysis in Sports 7
(3).
Aoyagi, M. (2010). Information feedback in a dynamic tournament. Games and Economic Behavior, 70 242–260
Ba¸sar, T. & Olsder, G-.J. (1987). Dynamic Noncooperative Game Theory. Society for Industrial & Applied
Mathematics.
Berger, J. & Pope, D. (2011) Can Losing Lead to Winning ? Management Science 57(5), 817–827,
Bressan, A. (2011). Noncooperative Differential Games : A Tutorial. Penn State University Lectures Notes.
Coffey, B. & Maloney, M.T. (2010). The thrill of victory : Measuring the incentive to win Journal of Labor Economics 28
(1) , 87–112.
Courty, P. & Marschke, G.R. (2004). An empirical investigation of gaming responses to explicit performance
incentives. Journal of Labor Economics 22 :1, 23–56.
Dionne, G. , Pinquet, J. Maurice, M. & Vanasse, C. (2011) Incentive Mechanisms for Safe Driving : A Comparative
Analysis with Dynamic Data. Review of Economic Studies 93 (1), 218–227.
Delfgaauw, J., Dur, R., Non, A. & Verbeke, W. (2014) Dynamic incentive effects of relative performance pay : A field
experiment. Labour Economics, 28,1–13.
Ederer, F. (2010). Feedback and motivation in dynamic tournaments Journal of Economics and Management Strategy, 19
(3), 733–769.
Eriksson, T., Poulsen, A. & Villeval, M.C. (2009). Feedback and Incentives : Experimental Evidence. Labour Economics,
16, 679–688.
Everson, P. & Goldsmith-Pinkh, P.S. (2008). Composite Poisson Models for Goal Scoring. Journal of Quantitative Analysis
in Sports 4 (2).
Falk, A. & Ichino, A. (2006). Clean Evidence on Peer Effects. Journal of Labor Economics, 24 (1), 39–58.
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Gabel, A. & Redner, S. (2012). Random Walk Picture of Basketball Scoring. Journal of Quantitative Analysis in Sports 8
(1), 1–18.
Gandar, J.M., Zuber, R.A. & Lamb, R.P. (2001). The Home Field Advantage Revisited : A Search for the Bias in
Other Sports Betting Markets. Journal of Economics and Business, 53 :4, 439–453.
Gershkov, A. & Perry, M. (2009). Tournaments with midterm reviews. Games and Economic Behavior, 66, 162–190.
Kahn, L.M. (2000) The Sports Business as a Labor Market Laboratory. Journal of Economic Perspectives, 14 :3, 75–94.
Kubatko, J., Oliver, D. Pelton, K. & Rosenbaum, D.T. (2007). A Starting Point for Analyzing Basketball Statistics.
Journal of Quantitative Analysis in Sports 3 1–24 .
Lazear, E. P., & Rosen, S. (1981). Rank-order tournaments as optimum labor contracts. Journal of Political Economy 89
(5) 841–864.
Lazear, E. P. (1989). Pay Equality and Industrial Politics. Journal of Political Economy 97 (3), 561–580.
Lazear, E.P. & S. Rosen. (1981). Rank-order tournaments as optimum labor contracts. Journal of Political Economy 89(5)
841–864
Lazear, E.P. & Gibbs, M. (2009) Personnel Economics in Practice. Wiley.
Mas, A., & Moretti, E. (2009). Peers at Work. American Economic Review, 99 (1), 112–145.
Massey, C. &Thaler, R.H. (2013). The Loser’s Curse : Overconfidence vs. Market Efficiency in the National Football
League Draft. Management Science, 59 :7, 1479–1495
Meritt, S. & Clauset, A. (2014).Scoring dynamics across professional team sports : tempo, balance and predictability.
EPJ Data Science, 3 :4, 1479–1495
Prendergast, C. (1999). The Provision of Incentives in Firms. Journal of Economic Literature 37, 7–63.
Skinner, B. (2010). The Price of Anarchy in Basketball.Journal of Quantitative Analysis in Sports 6.
Soebbing, B. & Humphreys, B. (2010) Do gamblers think that teams tank ? Evidence from the NBA. Contemporary
Economic Policy, 31 301–313.
Vergin, R. (2000) Winning streaks in sports and the misperception of momentum Journal of Sports Behavior, 23, .
Westfall, P.H. (1990). Graphical Presentation of a Basketball Game The American Statistician, 44 :4, 305–307.
70

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GERAD talk, Basket Ball & Incentives

  • 1. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Modeling Dynamic Incentives an Application to Basketball Games Arthur Charpentier1 , Nathalie Colombier2 & Romuald ´Elie3 1UQAM 2Universit´e de Rennes 1 & CREM 3Universit´e Paris Est & CREST charpentier.arthur@uqam.ca http ://freakonometrics.hypotheses.org/ GERAD Seminar, June 2014 1
  • 2. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Why such an interest in basketball ? Berger and Pope (2011) ‘Can Losing Lead to Winning ? ’ (preprint in 2009). See also A Slight Deficit Can Actually Be an Edge nytimes.com, When Being Down at Halftime Is a Good Thing, wsj.com, etc. Focus on winning probability in basketball games, logistic regression log P[wini] 1 − P[wini] = β0 + β1(score difference at half time)i + γT Xi + εi Xi is a matrix of control variables for game i s(e.g. home vs. visitor effect). −40 −20 0 20 40 0.00.20.40.60.81.0 2
  • 3. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Modeling dynamic incentives ? They did focus on score at half time, but the original dataset had much more information : score difference from halftime until the end (per minute). =⇒ a dynamic model to understand when losing lead to losing At the same time, talk on ‘Point Record Incentives, Moral Hazard and Dynamic Data ’ by Dionne, Pinquet, Maurice & Vanasse (2011) Study on incentive mechanisms for road safety, with time-dependent disutility of effort. 3
  • 4. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Agenda of the talk • From basketball to labor economics • Understanding the dynamics : modeling processes ◦ Long term dynamics (over a season) ◦ Short term dynamics (over a game) • An optimal effort control problem ◦ A simple control problem ◦ Nash equilibrium of a stochastic game ◦ Numerical computations • Understanding the dynamics : modeling processes ◦ The score difference process ◦ A proxy for the effort process • Modeling the probability to win a game 4
  • 5. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Incentives and tournament in labor economics The pay schemes : Flat wage pay versus rank-order tournament (relative performance evaluation). Impact of relative performance evaluation, see Lazear (1989) : • motivate employees to work harder • demoralizing and create excessively competitive workplace 5
  • 6. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Incentives and tournament in labor economics For a given pay scheme : how intensively should the organization provide his employees with information about their relative performance ? • An employee who is informed he is an underdog ◦ may be discouraged and lower his performance ◦ works harder to preserve to avoid shame • A frontrunner who learns that he is well ahead ◦ may think that he can afford to slack ◦ becomes more enthusiastic and increases his effort 6
  • 7. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Incentives and tournament in labor economics ⇒ impact on overall perfomance ? • Theoritical models conclude to a positive impact, see Lizzeri, Meyer & Persico (2002), Ederer (2004) • Empirical literature : ◦ if payment is independant of the other’s performance : positive impact to observe each other’s effort, see Kandel & Lazear (1992). ◦ in relative performance (both tournament and piece rate) : does not lead frontrunners to slack off but significantly reduces the performance of underdogs (quantity vs. quality), see Eriksson, Poulsen & Villeval (2009). 7
  • 8. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The dataset for 2008/2009 NBA match 8
  • 9. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The dataset for 2008/2009 NBA match Atlantic Division W L Northwest Division W L Boston Celtics 62 20 Denver Nuggets 54 28 Philadelphia 76ers 41 41 Portland Trail Blazers 54 28 New Jersey Nets 34 48 Utah Jazz 48 34 Toronto Raptors 33 49 Minnesota Timberwolves 24 58 New York Knicks 32 50 Oklahoma City Thunder 23 59 DCentral Division W L Pacific Division W L Cleveland Cavaliers 66 16 Los Angeles Lakers 65 17 Chicago Bulls 41 41 Phoenix Suns 46 36 Detroit Pistons 39 43 Golden State Warriors 29 53 Indiana Pacers 36 46 Los Angeles Clippers 19 63 Milwaukee Bucks 34 48 Sacramento Kings 17 65 SoutheastDivision W L Southwest Division W L Orlando Magic 59 23 San Antonio Spurs 54 28 Atlanta Hawks 47 35 Houston Rockets 53 29 Miami Heat 43 39 Dallas Mavericks 50 32 Charlotte Bobcats 35 47 New Orleans Hornets 49 33 Washington Wizards 19 63 Memphis Grizzlies 24 58 9
  • 10. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games A Brownian process to model the season (LT) ? Variance of the process (t−1/2 St), (St) being the cumulated score over the season, after t games (+1 winning, -1 losing) time in the season t 20 games 40 games 60 games 80 games Var t−1/2 St 3.627 5.496 7.23 9.428 (2.06,5.193) (3.122,7.87) (3.944,4.507) (3.296,3.766) 10
  • 11. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games A Brownian process to model the season (LT) ? q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q 0 20 40 60 80 02468101214 Var( St t ) Time (t) in the season (number of games) 11
  • 12. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games A Brownian process to model the score difference (ST) ? Variance of the process (t−1/2 St), (St) being the score difference at time t. time in the game t 12 min. 24 min. 36 min. 48 min. Var t−1/2 St 5.010 4.196 4.21 3.519 (4.692,5.362) (3.930,4.491) (3.944,4.507) (3.296,3.766) 12
  • 13. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games A Brownian process to model the score difference (ST) ? q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q 0 10 20 30 40 3.54.04.55.05.5 Var( St t ) Time (t) in the game (in min.) 13
  • 14. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The score difference as a controlled process Let (St) denote the score difference, A wins if ST > 0 and B wins if ST < 0. q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q 0 10 20 30 40 −20−1001020 Time (min.) Team A wins Team B wins q The score difference can be driven by a diffusion dSt = µdt + σdWt 00 14
  • 15. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The score difference as a controlled process The score difference can be driven by a diffusion dSt = [µA − µB]dt + σdWt q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q 0 10 20 30 40 −20−1001020 Time (min.) Team A wins Team B wins q Here, µA < µB 15
  • 16. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The score difference as a controlled process The score difference can be driven by a diffusion dSt = [µA − µB]dt + σdWt q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q 0 10 20 30 40 −20−1001020 Time (min.) Team A wins Team B wins q q difference 16
  • 17. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The score difference as a controlled process The score difference can be driven by a diffusion dSt = [µA − µB]dt + σdWt q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q 0 10 20 30 40 −20−1001020 Time (min.) Team A wins Team B wins q q q at time τ = 24min., team B can change its effort level, dSt = [µA − 0]dt + σdWt 17
  • 18. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The score difference as a controlled process The score difference can be driven by a diffusion dSt = [µA − 0]dt + σdWt q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q 0 10 20 30 40 −20−1001020 Time (min.) Team A wins Team B wins q q q q at time τ = 36min., team B can change its effort level, dSt = [µA − µB]dt + σdWt difference 18
  • 19. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The score difference as a controlled process The score difference is now driven by a diffusion dSt = [µA − µB]dt + σdWt q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q 0 10 20 30 40 −20−1001020 Time (min.) Team A wins Team B wins q q q q 19
  • 20. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Introducing the effort as a control process There are two players (teams), 1 and 2, playing a game over a period [0, T]. Let (St) denote the score difference (in favor of team 1 w.r.t. team 2) • team 1 : max (u1)∈U1 E [1(ST > 0)] + T τ e−δ1t L1(α1 − u1,t) dt • team 2 : max (u2)∈U2 E [1(ST < 0)] + T τ e−δ2t L2(α2 − u2,t) dt where (St) is a stochastic process driven by dSt = [u1(St) − u2(St)]dt + σdWt on [0, T]. 20
  • 21. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Introducing the effort as a control process There are two players (teams), 1 and 2, playing a game over a period [0, T]. Let (St) denote the score difference (in favor of team 1 w.r.t. team 2) • team 1 : max (u1)∈U1 E [1(ST > 0)] + T τ e−δ1t L1(α1 − u1,t) dt • team 2 : max (u2)∈U2 E [1(ST < 0)] + T τ e−δ2t L2(α2 − u2,t) dt where (St) is a stochastic process driven by dSt = [u1(St) − u2(St)]dt + σdWt on [0, T]. 21
  • 22. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games An optimal control stochastic game There are two players (teams), 1 and 2, playing a game over a period [0, T]. Let (St) denote the score difference (in favor of team 1 w.r.t. team 2) • team 1 : u1,τ ∈ argmax (u1)∈U1 E [1(ST > 0)] + T τ e−δ1t L1(α1 − u1,t(St)) dt • team 2 : u2,τ ∈ argmax (u2)∈U2 E [1(ST < 0)] + T τ e−δ2t L2(α2 − u2,t(St)) dt where (St) is a stochastic process driven by dSt = [u1,t(St) − u2,t(St)]dt + σdWt on [0, T]. =⇒ non-cooperative stochastic (dynamic) game with 2 players and non-null sum 22
  • 23. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games An optimal control problem Consider now not a game, but a standard optimal control problem, where an agent faces the optimization program max (ut)t∈[τ,T ] E 1(ST > 0) + T τ e−δt L(α − ut)dt , with dSt =    udt + σdWt if ut = u (= u > 0) udt + σdWt if ut = u (= 0) where L is an increasing convex utility function, with α > 0, and δ > 0. Consider a two-value effort model, • if ut = 0, there is fixed utility L(α) • if ut = u > 0, there an decrease of utility L(α − u) < L(α), but also an increase of P(ST > 0) since the stochastic diffusion now has a positive drift. 23
  • 24. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games When should a team stop playing (with high effort) ? The team starts playing with a high effort (u), and then, stop effort at some time τ : utility gains exceed changes in the probability to win, i.e. T τ e−δt L(α − u)dt + P(ST > 0|Sτ , positive drift on [τ, T]) > T τ e−δt L(α)dt + P(ST > 0|Sτ , no drift on [τ, T]) Recall that, if Z = ST − Sτ P(ST > 0|Sτ = d, no drift on [τ, T]) = P(Z > −d|Z ∼ N(0, σ √ T − τ)) P(ST > 0|Sτ = d, drift on [τ, T]) = P(Z > −d|Z ∼ N(u[T − τ], σ √ T − τ)) where µ = 1 2 u. 24
  • 25. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Thus, the difference between those two probabilities is Φ d σ [T − τ] − Φ d + [T − τ]u σ [T − τ] Thus, the optimal time τ is solution of [L(α − u) − L(α)] [e−δτ − e−δT ] δ ≈T −τ = Φ d σ [T − τ] − Φ d + [T − τ]u σ [T − τ] . i.e. τ = h(d, λ, u, L, σ). Thus, the optimal time to stop playing with hight effort (as a function of the remaining time T − τ and the score difference d) is the following region, 25
  • 26. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Region where teams stop making (high) efforts 0 10 20 30 40 −15−10−5051015 Obviously, it is too simple.... we need to consider a non-cooperative game. 26
  • 27. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Optimal strategy on a discretized version of the game Assume that controls u1 and u2 are discrete, taking values in a set U. Since we consider a non-null sum game, Nash equilibrium have to be searched in extremal points of polytopes of payoff matrices (see ). Looking for Nash equilibriums might not be a great strategy Here, (u1, u2) is solution of maxmin problems u1 ∈ argmax u1∈U min u2∈U J1(u1, u2) and u2 ∈ argmax u2∈U min u1∈U J2(u1, u2) where J functions are payoffs. 27
  • 28. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 Let (St)t∈[0,T ] denote the score difference over the game, dSt = (u1(St ) − u2(St ))dt + dWt 28
  • 29. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q At time τ ∈ [0, T), given Sτ = x, player 1 seeks an optimal strategy, u1,τ (x) ∈ argmax u1∈U min u2∈U E α11(ST > 0) + T τ L1(u1,s(Ss ))ds 29
  • 30. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q At time τ ∈ [0, T), given Sτ = x, player 1 seeks an optimal strategy, u1,τ (x) ∈ argmax u1∈U min u2∈U E α11(ST > 0) + τ+h τ L1(u1)ds + T τ+h L1(u1,s(Ss ))ds 30
  • 31. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q Consider a discretization of [0, T] so that optimal controls can be updated at times tk where 0 = t0 ≤ t1 ≤ t2 ≤ · · · ≤ tn−2 ≤ tn−1 ≤ tn = T. We solve the problem backward, starting at time tn−1. 31
  • 32. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q q q q Given controls (u1, u2) , Stn = Stn−1 + [u1 − u2](tn − tn−1) + εn, where Stn−1 = x. u1,n−1(x) ∈ argmax u1∈U min u2∈U J1(u1, u2) where J1(u1, u2) is the sum of two terms, P(Stn > 0|Stn−1 = x) = s∈S+ P(Stn = s|Stn−1 = x) and L1(u1). 32
  • 33. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q q q q q q q q Stn = Stn−2 + [u1 − u2](tn−1 − tn−2) + εn−1 Stn−1 +[u1,n−1−u2,n−1(Stn−1 )](tn−tn−1)+εn, where Stn−2 = x. Here u1,n−2(x) ∈ argmax u1∈U min u2∈U J1(u1, u2) , where J1(u1, u2)... 33
  • 34. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q q q q q q q q ... is the sum of two terms, based on P(Stn = y|Stn−2 = x) = s∈S P(Stn = y|Stn−1 = s) function of (u1,n−1(s),u2,n−1(s)) · P(Stn−1 = s|Stn−2 = x) function of (u1,u2) 34
  • 35. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q q q q q q q q ... one term is P(Stn > 0|Stn−2 = x) (as before), the sum of L1(u1) and E(L1(u1,n−1)) = s∈S L1(u1,n−1(s)) · P(Stn−1 = s|Stn−2 = x) 35
  • 36. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q q q q q q q q q Stn = Stn−3 + [u1 − u2]dt + εn−2 Stn−2 +[u1,n−2 − u2,n−2(Stn−2 )]dt + εn−1 Stn−1 +[u1,n−1 − u2,n−1(Stn−1 )]dt + εn with Stn−3 = x. 36
  • 37. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q q q q q q q q q P(Stn = y|Stn−3 = x) = s1,s2∈S P(Stn = y|Stn−1 = s2) function of (u1,n−1(s2),u2,n−1(s2)) · P(Stn−1 = s2|Stn−2 = s1) function of (u1,n−2(s1),u2,n−2(s1)) · P(Stn−2 = s2|Stn−3 = s1) function of (u1,u2) 37
  • 38. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Discretized version of the stochastic game 0 10 20 30 40 −10−50510 q q q q q q q q q Based on those probabilities, we have P(Stn > 0|Stn−3 = x) and the second term is the sum of L1(u1) and E(L1(u1,n−2) + L1(u1,n−1)) i.e. s∈S L1(u1,n−2(s)) · P(Stn−2 = s|Stn−3 = x) + s∈S L1(u1,n−1(s)) · P(Stn−1 = s|Stn−3 = x) 38
  • 39. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Numerical computation of the discretized game team 1 on the left vs team 2 on the right : low effort high effort (simple numerical application, with #U = 60 and n = 12) T τ e−δ(s−τ) ds } q q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 39
  • 40. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Numerical computation of the discretized game team 1 on the left vs team 2 on the right : low effort high effort α1 ↑ u1,τ (x) ∈ argmax u1∈U min u2∈U E α11(ST > 0) + T τ e−δ1(s−τ) (b1 − u1,s(Ss ))γ1 ds q q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 40
  • 41. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Numerical computation of the discretized game team 1 on the left vs team 2 on the right : low effort high effort b1 ↑ u1,τ (x) ∈ argmax u1∈U min u2∈U E α11(ST > 0) + T τ e−δ1(s−τ) (b1 − u1,s(Ss ))γ1 ds q q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 41
  • 42. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Numerical computation of the discretized game team 1 on the left vs team 2 on the right : low effort high effort γ1 ↑ u1,τ (x) ∈ argmax u1∈U min u2∈U E α11(ST > 0) + T τ e−δ1(s−τ) (b1 − u1,s(Ss ))γ1 ds q q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 42
  • 43. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Numerical computation of the discretized game team 1 on the left vs team 2 on the right : low effort high effort δ1 ↑ u1,τ (x) ∈ argmax u1∈U min u2∈U E α11(ST > 0) + T τ e−δ1(s−τ) (b1 − u1,s(Ss ))γ1 ds q q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 q q 0.0 0.2 0.4 0.6 0.8 1.0 −20−1001020 43
  • 44. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Description of the dataset GameID LineNumber TimeRemaining Entry 20081028CLEBOS 1 00:48:00 Start of 1st Quarter 20081028CLEBOS 2 00:48:00 Jump Ball Perkins vs Ilgauskas 20081028CLEBOS 3 00:47:40 [BOS] Rondo Foul:Shooting (1 PF) 20081028CLEBOS 4 00:47:40 [CLE 1-0] West Free Throw 1 of 2 (1 PTS) 20081028CLEBOS 5 00:47:40 [CLE 2-0] West Free Throw 2 of 2 (2 PTS) 20081028CLEBOS 6 00:47:30 [BOS] Garnett Jump Shot: Missed 20081028CLEBOS 7 00:47:28 [CLE] James Rebound (Off:0 Def:1) 20081028CLEBOS 8 00:47:22 [CLE 4-0] James Pullup Jump shot: Made (2 PTS) 20081028CLEBOS 9 00:47:06 [BOS 2-4] Pierce Slam Dunk Shot: Made (2 PTS) Assist: Rondo (1 AST) 20081028CLEBOS 10 00:46:57 [CLE] James 3pt Shot: Missed 20081028CLEBOS 11 00:46:56 [BOS] R. Allen Rebound (Off:0 Def:1) 20081028CLEBOS 12 00:46:47 [BOS 4-4] Garnett Slam Dunk Shot: Made (2 PTS) Assist: Rondo (2 AST) 20081028CLEBOS 13 00:46:24 [CLE 6-4] Ilgauskas Driving Layup Shot: Made (2 PTS) Assist: James (1 AST) 20081028CLEBOS 14 00:46:13 [BOS] Garnett Jump Shot: Missed 20081028CLEBOS 15 00:46:11 [BOS] Perkins Rebound (Off:1 Def:0) 20081028CLEBOS 16 00:46:08 [BOS] Pierce 3pt Shot: Missed 20081028CLEBOS 17 00:46:06 [CLE] Ilgauskas Rebound (Off:0 Def:1) 20081028CLEBOS 18 00:45:52 [CLE] M. Williams Layup Shot: Missed 20081028CLEBOS 19 00:45:51 [BOS] Garnett Rebound (Off:0 Def:1) 20081028CLEBOS 20 00:45:46 [BOS] R. Allen Layup Shot: Missed Block: James (1 BLK) 20081028CLEBOS 21 00:45:44 [CLE] West Rebound (Off:0 Def:1) 44
  • 45. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Description of the dataset GameID LineNumber TimeRemaining Entry 20081028CLEBOS 1 00:48:00 Start of 1st Quarter 20081028CLEBOS 2 00:48:00 Jump Ball Perkins vs Ilgauskas 20081028CLEBOS 3 00:47:40 [BOS] Rondo Foul:Shooting (1 PF) 20081028CLEBOS 4 00:47:40 [CLE 1-0] West Free Throw 1 of 2 (1 PTS) 20081028CLEBOS 5 00:47:40 [CLE 2-0] West Free Throw 2 of 2 (2 PTS) 20081028CLEBOS 6 00:47:30 [BOS] Garnett Jump Shot: Missed 20081028CLEBOS 7 00:47:28 [CLE] James Rebound (Off:0 Def:1) 20081028CLEBOS 8 00:47:22 [CLE 4-0] James Pullup Jump shot: Made (2 PTS) 20081028CLEBOS 9 00:47:06 [BOS 2-4] Pierce Slam Dunk Shot: Made (2 PTS) Assist: Rondo (1 AST) 20081028CLEBOS 10 00:46:57 [CLE] James 3pt Shot: Missed 20081028CLEBOS 11 00:46:56 [BOS] R. Allen Rebound (Off:0 Def:1) 20081028CLEBOS 12 00:46:47 [BOS 4-4] Garnett Slam Dunk Shot: Made (2 PTS) Assist: Rondo (2 AST) 20081028CLEBOS 13 00:46:24 [CLE 6-4] Ilgauskas Driving Layup Shot: Made (2 PTS) Assist: James (1 AST) 20081028CLEBOS 14 00:46:13 [BOS] Garnett Jump Shot: Missed 20081028CLEBOS 15 00:46:11 [BOS] Perkins Rebound (Off:1 Def:0) 20081028CLEBOS 16 00:46:08 [BOS] Pierce 3pt Shot: Missed 20081028CLEBOS 17 00:46:06 [CLE] Ilgauskas Rebound (Off:0 Def:1) 20081028CLEBOS 18 00:45:52 [CLE] M. Williams Layup Shot: Missed 20081028CLEBOS 19 00:45:51 [BOS] Garnett Rebound (Off:0 Def:1) 20081028CLEBOS 20 00:45:46 [BOS] R. Allen Layup Shot: Missed Block: James (1 BLK) 20081028CLEBOS 21 00:45:44 [CLE] West Rebound (Off:0 Def:1) 45
  • 46. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Homogeneity of the scoring process 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Winning team (end of the game) Losing team 46
  • 47. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The scoring process : ex post analysis of the score 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Winning team (end of the first quarter) Losing team 47
  • 48. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The scoring process : ex post analysis of the score 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Winning team (end of the second quarter) Losing team 48
  • 49. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The scoring process : ex post analysis of the score 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Winning team (end of the third quarter) Losing team 49
  • 50. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The scoring process : home versus visitor 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Home team Visitor team 50
  • 51. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games The scoring process : team strategies ? 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Team : Clevaland Cavaliers All teams 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Team : Oklahoma City Thunder All teams 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Team : Los Angeles Lakers All teams 0 10 20 30 40 0.450.500.550.60 Time in the game Numberofpointsscored(/15sec.) Team : Sacramento Kings All teams 51
  • 52. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Effect of explanatory variables ? q q q q q q q q q q q q q q q q q q q q q q q q q q q q q Number of victories − 2007/2008 Numberofvictories−2008/2009 ATL BOS CLE DAL DEN DET HOU LAL NOH ORL PHI PHO SAS TOR UTA WAS CHA CHI GSW IND LAC MEN MIA MIL MIN NJN NYK POR SAC 20 30 40 50 60 2030405060 q q q q q q q q q q q q q q q q q q q q q q q q q q q q q Rank of the team − 2007/2008 Rankoftheteam−2008/2009 ATL BOS CLE DAL DEN DET HOU LAL NOH ORL PHI PHO SAS TOR UTA WAS CHA CHI GSW IND LAC MEN MIA MIL MIN NJN NYK POR SAC 30 25 20 15 10 5 0302520151050 cf. Galton’s regression to the mean. 52
  • 53. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Winning as a function of time and score difference Following the idea of Berger and Pope (2009), logit[p(s, t)] = log p 1 − p = β0 + β1s + β2(T − t)+xT γ (simple linear model) points difference timeinthegame(minutes) Y1 Winning probability (difference>0) −15 −10 −5 0 5 10 15 010203040 Winning probability (difference>0) points difference timeinthegame(minutes) 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.5 53
  • 54. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Winning as a function of time and score difference a natural extention logit[p(s, t)] = log p 1 − p = β0 + ϕ1[s] + ϕ2[T − t]+xT γ (simple additive model) points difference timeinthegame(minutes) Y2 Winning probability (difference>0) −15 −10 −5 0 5 10 15 010203040 Winning probability (difference>0) points difference timeinthegame(minutes) 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.5 54
  • 55. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Winning as a function of time and score difference or more generally logit[p(s, t)] = log p 1 − p = β0 + ϕ1[s, T − t]+xT γ (functional nonlinear model) points difference timeinthegame(minutes) Y3 Winning probability (difference>0) −15 −10 −5 0 5 10 15 010203040 Winning probability (difference>0) points difference timeinthegame(minutes) 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.5 55
  • 56. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Winning as a function of time and score difference qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 24 mins.) WinningProbability qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 28 mins.) WinningProbability qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 32 mins.) WinningProbability qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 36 mins.) WinningProbability qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 40 mins.) WinningProbability qqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqqq −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 42 mins.) WinningProbability −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 24 mins.) WinningProbability Home teams All teams Visitor teams −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 28 mins.) WinningProbability Home teams All teams Visitor teams −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 32 mins.) WinningProbability Home teams All teams Visitor teams −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 36 mins.) WinningProbability Home teams All teams Visitor teams −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 40 mins.) WinningProbability Home teams All teams Visitor teams −20 −10 0 10 20 0.00.20.40.60.81.0 Score Difference (after 42 mins.) WinningProbability Home teams All teams Visitor teams 56
  • 57. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Smooth estimation, versus raw data q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q −20 −10 0 10 20 010203040 Points difference Time −20 −10 0 10 20 010203040 Points difference Time 57
  • 58. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Smooth estimation, versus raw data q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q −20 −10 0 10 20 010203040 Points difference Time 0.1 0.2 0.30.4 0.5 0.6 0.7 0.8 0.9 0.5 −20 −10 0 10 20 010203040 Points difference Time 0.1 0.2 0.30.4 0.5 0.60.7 0.80.9 0.5 58
  • 59. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games Do teams update their effort ? −15 −10 −5 0 5 10 15 15202530354045 score difference time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.1 0.20.3 0.4 0.6 0.7 0.8 0.9 59
  • 60. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games When do teams stop their effort ? when teams are about to win (90% chance) −15 −10 −5 0 5 10 15 15202530354045 score difference time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.9 Time 15202530354045 Winning probability=0.9 60
  • 61. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games When do teams stop their effort ? (with a more accurate estimation of the change in the slope) −15 −10 −5 0 5 10 15 15202530354045 score difference time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.9 Time 15202530354045 Winning probability=0.9 61
  • 62. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games When do teams stop their effort ? when teams are about to win (80% chance) −15 −10 −5 0 5 10 15 15202530354045 score difference time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.8 Time 15202530354045 Winning probability=0.8 62
  • 63. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games When do teams stop their effort ? when teams are about to win (70% chance) −15 −10 −5 0 5 10 15 15202530354045 score difference time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.7 Time 15202530354045 Winning probability=0.7 63
  • 64. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games When do teams stop their effort ? when teams are about to loose (20% chance to win) −15 −10 −5 0 5 10 15 15202530354045 score difference time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.2 Time 15202530354045 Winning probability=0.2 64
  • 65. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games When do teams stop their effort ? when teams are about to loose (10% chance to win) −15 −10 −5 0 5 10 15 15202530354045 score difference time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.1 Time 15202530354045 Winning probability=0.1 65
  • 66. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games NBA players are professionals.... Here are winning probability, college (left) versus NBA (right), −10 −5 0 5 10 2025303540 Points difference Time 0.1 0.2 0.3 0.4 0.6 0.7 0.8 0.9 −10 −5 0 5 10 2530354045 Points difference Time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.5 66
  • 67. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games NBA players are professionals.... ... when they play at home, college (left) versus NBA (right), −10 −5 0 5 10 2025303540 Points difference Time 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.5 −10 −5 0 5 10 2530354045 Points difference Time 0.1 0.2 0.3 0.4 0.5 0.60.7 0.8 0.9 0.5 67
  • 68. Arthur CHARPENTIER, Nathalie Colombier & Romuald ´Elie - Modeling Dynamic Incentives: an Application to Basketball Games On covariates, and proxy for the effort q q q q q q q q q q q q q q q q q q qq q qq q q q q q qqq q q q q q qq q q q q q q q q q qq qq q qq qq q q q qqq q q q q q q q q q q q q q q q q q q q q qq q q q q q qq q q q q q qq q q q q q q q q q q q qq q q q q q qq q q qq q q q q q qq q q q q q q q q q q q q q qq q qq q q q q q q q q q qqq qq q qqq q q q q q q q q q q q q q qq q q qq q q q q q q qq q q q q q q q q q q q qqq q q qq q q q q q q q q qq q q q q q q q qq q q q q q q q qq q q q q q q q q q q q qqq qq q q q q q q q q q qq q q q q q q q qq qq q q qq q q q q q q q q q qq qqqq q q q q q q q q q q q q q q qq q q q q q q q q q q q q q q q q q q q q q q q q q q q q qq q q q qq q q q q qq q q q q q qq qq q q qq q q q q q q q qq q q q q qq qq q q q q q q q q q q qq q qq q q q q q q q q q q q q q q q q q q q q q q q q qq qq q q q q q q q q q q q q q q qq q q q q q q q qq q qq q q q q q q q q q q qqq q q q qq q qq q q qq q q q qq q q q q q q q q qq qq q q q q q q q q q q q q q qq q q q q q q qqq q q q q qq qq q q q q q q q q q q q q q q q q q q q qq q q q q q q q q qq qq q q q q q q q q q q qq q q q qq qq q q q q q q q q q q qq qq q q q q q q q qq q q qq qq q q q q qq q q q qq q qq q q q qq q q q q q q q q q qqq q q q q q q q q q q q q q qq q q q q q q q qq q q q q q q q q q q qq q qq q q qq q q qq q q q q q qq q qq q q q q q q q qq qq q q q q q q q q qq q q q q q q q q q q q q q q q q q q q q q q q q q q qq q q qq qq q q q q q qqq q q q q q q q q q q q q q q q q q q q q qq q qq q q q q q q q q qq q q q q q q q q q q q q q q q q q qq q q q qq qq q q q q q q q q q qq q qq q q q q q q q q qq q q q q q q q q q q q q q q q qq q q qq q qq qq q q q q q q qq q q q q q q q qqq q q q q q q q q q q q q q q q q q q q q q q q q q q qq qq q q q q q q q q q q q q q q q q q q qq q q q q q q q q q q q q q q q q q qq q q q qq q q q q q q q q q q q q qq q q q q q q qqq qq q q qq q q q qq q q qq q q q q qq q q qqq q q q qq qq q q q q qq q q qq qq q qq q q q q q q q q q q q q q q q qq q q q q q q q q qq q q q q q q q qq q q q q q q q q q q q q qq q q q q q q q q q q q q q q q q qq q q q q q q q qq q q q q q q q qq q qq q q q q q q q q q q q q q q q q q qq q q q q q q q q q q q q q q q q q qq q q qq qq q q q q q q q q qq q qq q qq q q q q q q q q qq q q q qqq q q qq q q q q qq q q q q q q q q q q q q q q q q qqq q q q q q q q q qq qq qq qq q q q q q q q q q q q q q qq q q q q q q qq q q q qq q q q qq qq qq q qq q q q q q q qq q qq q q qq qq q q q q q q q q qq q q q q q q q q q q q q q q q q q q q q q q q q q qq q q qq qqq q q q q qq q q q q q q q qq q q q qq q q qq q q q q q q q q q q q q qq q q q q q qq q q q q qq q q q q q q q qq q q qqq q q q q q q q q q qq q q q q q q q q q q q qq q q q q q q q q qq q q q q qq q q qq q q qq q q q q qq q q q q q q q q q q q q qq q q q q q qq q q q q q q q q q q q q q q q q q q qq qq qq q q q q q q q qq q q q q q q q q q q q q q qq q q q q q q qq q q q q q q qq q q q q q q q q q q q q q q q q q q q q q q q qq q q q q q qq q q q q q q q q q q qq qq q qq q q q q q qq q q q q qq q qqq q q q q q q q q qq qq q q q qq q q q q q q qq q q q q q q q q q q q qq q q q q q q qq q q q q q q q q qq q q q q q q q q q q q q q q q q q q qq q q q q qq q q q q q q q q q qq q q q q q q q q q q q q q q qq q q q q qq q qq q q q q q q q q qq q q q q q q q q q qq q q qq q q q q qq qq q q q q q qq qq q q q q q q q q q q qq q q q qq q q qq q qq q q q qq q q q q q q q q q q qq q q q q q q q q q q qq qq q q q q q q q q q qq q q q q q qq qq q q qq qq q q q q q q q q q q q q q q q qq q q q q q q q q q q q q q q q qq q q q q q qq qq qq q q q qq qq q q q q q q q q q q q qq q q q q q qq q q q qq qq q q q q q q q q q −15 −10 −5 0 5 10 15 2.02.22.42.62.83.0 Score Difference (beginning 3rd period) Numberoffaults(first2minutes) q qq qqq q qqqqq qq qqq q q q qq qq q qq qq qq qq qqq qqq qqq qq qqq qq qq qq q q qqq qq qq qqq q qq q qqqq qq qq q q qqq qq qq q qqq qq q qq qq q qq qq qq qqq q q qq qq qq qqq q qqq qq qqqq qq q qq q qq q qq q qqq qqq qqq qq q qqq q qqq qq qqq qqq q qq q qq qq qqq qq q qqq q qq qq q q qqq qq qq q q qq qqq qqqq qq q qqq qqq q qq q qq qq q qq q qq qqq qq qqq qq qq qq q qqq q qq qq qqq qq q qq qq qq qqq qqqq qq qq q qqq q qqq qq qqq qq qq qqqq qqq qq qq q qq qq qqqq qq qqq qq q q q qq qq qqq qq q qqq qq qqq q qq qq qq qq qq qqq qq qqqq q qqqq qqq qq q q qqqqq q qq qq qqq qqqqq q q qqq qqq q qq q q qq qqq qq q qq qqq q qq q qqq qq q qq q q qqqq qqq qq qqq qq qqq qqq qqq q qq qq qq q qq qq q q qq qqq qq qqq q q qqq qqq qq q qq qqqq qqq q qq q qq q qq qqq qq qq q qqqqq qq qq qqq q qq q qq qq qq qq q qq q qqqqqqq qq q qq q qq qq qq q q qq q qq qq q qqq qq qq qq q qq qq q qq qq qq qqq qqq qq qq qq qqqq −15 −10 −5 0 5 10 15 0.500.550.600.650.700.750.800.85 Score Difference (beginning 3rd period) Number3ptsshots(first2minutes) q qq qqq q q q qq q q q q qq q q q q q q q q qqq q q q q qq qq q q q q q q q q q qq q q q qq q q q q qq q qq q q q q q q q q q q qqq q q q qq q q q qq q q q q qq q q q q qq qq q q q q qq q q q q q q q q q q q q q q q q qq qq qq q q qq q q q q qq q q q q qq qq q q q q qq q q q q q q q q qq q q q q q q q q q qq q q q qq qq q q q q q q qq q q q q q q qq q q q qq q q q q q q q q q q q q q q q q q qq q q qq q qq q q q q q q q qq q qq q q q q q q q q qq qq q q q q qq q q q q q q q q q qq q q q q q q q qq q q q q q q q q qq q q q q q q q qqq q qq q q q qqq q q q q q q q qq q q q q q q qq q q q q q q q qq q q q qq q q qq q q q q q q q q q q q q q q q q q q q q q q q q q q q q qq q q q q qq q q q q q qq qq q q q q q q q q q q q qq qq qq q q q qqq q q q q q q qq q q q qq q q q qq q qq q q q q q q q q qq q q q q q q q q q qq q q q q q q q qq q q q qq q q q q q q qq q q q q q q q q q q qq q q q q q q q qq q q q q q q q q q q q q q q q q q q q q q qq q qq q q qq q q q qq q q q q q q q q q qq q q q q q q qq qq q q q q qq q q q q q q q qqq q q q q q q q q q q q q q q q q qq q q q q q q qq q q q q q q q q qq q q q q qq q q q q q q q q qq qqq q q q q q q q q q q q q q q q qq q q qq q q q q q qq q qq q q q qq q qq q qq q qq q q q q q q q q q q q q q q q q q q qq q q q q qq q q qq q q q qq q q qq q q qq qq qq q q q q q q q q q q q q q q qqq q qq q q q qq qq q q q q q qq q qq q q q q q qq q q q qq q q q q q q q q q q qq q q q q q q q qq q qq qq q q qqq qq q qq qq q qq q q q q q q q q q q q q q q q q q q q q q q q q q q q q qq q q q q q q q qq q qq q qqq q q qq q q q q q q q q q q q q q q qq qq qq qq q q q qq q q q q q q qq qq q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q q qq q q qq q q q q qqq q q q qq q q q q q q q qq qq qq q q q q q q q qq q q q q q q qq qq q q q q q qq q q q q q q q qqq q q q qq q q q q q q q qq q q q q q q q q qqq qq q q q qq qq qq q qq q q qq q q q qq q q q qq q q q q q q qq q q q q qq q q q q q qq q q q q q q q q q q q qq q qq q q q q q q q q q q qq q q q q q q q q q q qq q qq q q q q q q q q q q q q q q q q q q q q q q q q q q q q q qq q q qq q q q q qq q q q q q q q q q q q qq q q q q qq q qq q q q q q q q qq qqq qq q q q q q q q q q q q q q q q q q q q q q q q qq q q q q q q qq q q q q q q q q q q q q q q q q q q q q q q q qq q q q q q q qq q q qq qq q q q q q q q qq q q q q q q q q q q q q qq q q q q q qq q q q q q qq q q q q q q q q q q q q q q q q q q q q q q qq q q q q q q q q q q q q qq q q q q q q q q q q q q q qq q qq q q q q q q q q q q q q qq qq q q q q q q q q q q q q qq q q qq q q qq q q qq qq q qq qq q qq q q q qq q q qq q q q q q q q q q q q q q q q qq q q q q q q q qq qq q q q q q q q qq q qq q q q q q q q q q q q q qq q q qq q q q q q q qq q q q q q q q qq q q q q q q q q q q q q q q q q q qq qq q q q q qq q q q q q q q q q q q qq qq q q q qqq q q qq q q q q q q q q q q q q q q qq q q q q q q q q qq q q q q q qq q q q q q q qq q q q q q q q q qq q q q qq q q qq qq q q qq q q q q qq q qq qqq q q q q q q q q q q qq q q qq q q q q qq q q qq qq qqq q q qq q q q −15 −10 −5 0 5 10 15 2.02.22.42.62.83.0 Score Difference (beginning 4th quarter) Numberoffaults(first2minutes) q qqq q qq qq qq q qqq q qq qq qqqq qq qqq qq q qqq qq qqq q qq q qq q qq qqqq q qqqqq q qq qq qqq qq qq q qq qqq qq q qq qqq qqq qqq qq qq qq qq qq qqq qq qq qq qq qq qqq qqqq q qq q qqqq q q qq qq qq qq qq qq qq qq qqqqqqq qq qq qq qq qq qq q q qqq qq q qqq qq qq qq qqq q qqqq q q qq q qqq qqq q qq qq q qqq qq q qq qq qq q qq qq qqq qqq q qqqq qq qq qq qq qqq q q qq q qqqq qq qqq qq q q qq qq q qq q qqq qqq q q qqqq q qq qq q qq q qq q qqq q q qqq qq qqq qqq qq qq qq q qq q qqq qq qq qq qqq qq q qq qq q qqqq q qq q qq qq q qq qq qq qqq q qq q q qqq qq qqq qqqq qq qq qq q qqqq q qqqq q qqq q qqq qqq q q qqqqq q qq qq qq qqqq q −15 −10 −5 0 5 10 15 0.500.550.600.650.700.750.800.85 Score Difference (beginning 4th period) Number3ptsshots(first2minutes) 68
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