In a situation like this:
Since there are no tangible incentives, the distinction between calling B and C jointly sharing 2nd place vs jointly sharing 3rd place is quite artificial. All the rankings can directly say is that:
A > B = C > D
Let’s consider Bob’s perspective (to give player B a nickname). How might he prefer A > B = C > D
versus another outcome like A > C > B > D
or A > B > C > D
?
With the stated objective of “rank ahead of as many players as possible”, Bob would of course prefer A > B > C > D
the most, but is ambivalent about A > C > B > D
vs A > B = C > D
, since in either case he is still only ahead of only one. Such an objective encourages risk taking to avoid a draw, since it is anyways no worse than trying for a better rank and falling behind those you might have drawn with. Curiously, this objective says a 4-way draw is no better than finishing fourth strictly behind the rest.
An alternative objective of “rank behind as few players as possible” has the curious effect of ranking a 4-way draw the same as a solo victory, which clearly is not what we want either. This type of objective encourages risk aversion.
Ultimately, I think how people might prefer between outcomes is actually a mixture of the two objectives. Perhaps, a player would first care about ranking ahead of as many players as possible, but then secondarily, also care about ranking behind as few players as possible.
In such a perspective, Bob would strictly prefer the three outcomes discussed above in this order:
- A > B > C > D
- A > B = C > D
- A > C > B > D
Introducing the perspective of hypothetical cash payouts is another way to look at it, as already partially discussed above. For the sake of example, let’s pretend the nominal prizes are $500 for 1st, $200 for 2nd, $100 for 3rd, and $0 for 4th, if there are no tied rankings. However, now let’s revisit how prizes might be distributed when the outcome is A > B = C > D. With a “max ranks ahead” perspective, one might award B and C each only $100 (for being tied for 3rd), while in the “min ranks behind” perspective, one might award them each $200. However, with the third “combined” perspective (and to hold the total payout constant regardless of the outcome), one might award them both $150.
In this type of perspective, one might be faced with the strategic choice between playing safe and settling for a tie vs taking a risk to potentially rank ahead or rank below. However, whether one choose to play one way or the other depends on the specifics of the situation and one’s risk tolerance/aversion.