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Beyond Unidimensionality: General Factors and Residual Heterogeneity in Performance Evaluation

Published: January 15, 2026 | arXiv ID: 2601.10862v1

By: Krishna Sharma, Pritam Basnet

BigTech Affiliations: Stanford University

Potential Business Impact:

Finds hidden talents in sports players.

Business Areas:
Consumer Reviews Commerce and Shopping

How do evaluation systems compress multidimensional performance information into summary ratings? Using expert assessments of 9,669 professional soccer players on 28 attributes, we characterize the dimensional structure of evaluation outputs. The first principal component explains 40.6% of attribute variance, indicating a strong general factor, but formal noise discrimination procedures retain four components and bootstrap resampling confirms that this structure is highly stable. Internal consistency is high without evidence of redundancy. In out of sample prediction of expert overall ratings, a comprehensive model using the full attribute set substantially outperforms a single-factor summary (cross-validated R squared = 0.814). Overall, performance evaluations exhibit moderate information compression; they combine shared variance with stable residual dimensions that are economically meaningful for evaluation outcomes, with direct implications for the design of measurement systems.

Country of Origin
πŸ‡ΊπŸ‡Έ United States

Page Count
9 pages

Category
Economics:
General Economics