Commentators for a recent PGA Tour event wondered allowed why their are less low rounds on Sunday amongst the leaders. Brian Goff of the Sports Economist agrees with Johnny Miller:
Dan Hicks, Miller’s play-by-play colleague, suggested that Tiger’s presence may an intimidating factor. Miller offered a more economics-oriented answer (paraphrased):
“The prize money has grown so much on the PGA tour that now the today’s purse is $8 million with $1.5 million to the winner and $800,000 to second place. $800,000 is a lot of money.”
In essence, Miller suggested an “income effect” as the answer — prize money is so high to support large paychecks for non-winners. I’m not sure that his (and my) perception of few low Sunday rounds near the top of the leaderboard is correct or that the income effect is the answer, but it’s worth investigating.
In a related note, Johnny Miller’s commentating — economic analysis aside — usually creates a substitution effect in my household.