When I watch a golf tournament on TV, they seem to make a big deal of a tie (for example, a three way tie for 4th place). I would like to know how the prize money is payed out in that scenario. Do they take the prizes for 4th, 5th and 6th places and divide it among the three players or do they literally get one third of the 4th place prize?
Your firdt assumption is correct. In the case of a three-way tie for fourth place the prize money for 4-6 place would be added together and divided equally among the three golfers. The next golfer in the standings would get 7th place money.