FIFA allocated $230 million total for incentives at the 2006 World Cup. The allocation structure was convex, with the 1st place team receiving $19 million and decreasing amounts for lower finishes. Additional payments of $217 thousand were awarded for each win. The incentive structure encouraged greater effort, as the difference in payouts between places increased further down the bracket. Teams were estimated to increase their goals and performance by 21-55% due to the convex incentive structure.

1. World Cup 2006 Incentives by FIFA Vitaliy Kobets Vira Lyubchenko

4. Convex award structure

6. Convex award structure with additional payments 19,868 0,868 19,000 1st place 17,851 0,651 17,200 2nd place 17,051 0,651 16,400 3rd place 16,834 0,434 16,400 4rd place 9,017 0,217 8,800 5-8 places 6,500 0,000 6,500 9-16 places Total payment Additional payment Pure payment

7. Executive compensation 4 10,99% final - 1 0,75 6,34% 1/2 - final 1,75 86,69% 1/4 - 1/2 1,125 38,72% 1/8 - 1/4 Goals per one team Payoff structure

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