Frustration, Euphoria, and Violent Crime

We exploit a series of natural experiments that use real crime data to investigate the effect of a violation of expectancies on violent crime. We study two types of violation of expectancies that generate the emotions of frustration and euphoria. Our empirical designs exploit differential expectations (as measured by the odds of soccer games in the betting market) while maintaining the outcome unchanged (a loss in a soccer game for frustration, a win in a soccer game for euphoria). We find that frustration is followed by a spike in violent crime whereas euphoria is followed by a reduction in violent crime. The two effects are concentrated in a narrow time window after the end of the game: on..

Sports and Economics

The relevance of the specification assumptions when modelling the correlates of physical activity: an analysis across dimensions

There is a widespread economics literature on the determinants of sports participation and frequency, but the empirical evidence on the robustness of results to changes in the specification assumptions is still scarce. The goal of this paper is to contribute to fill this gap. To this end, we discuss and estimate different models - most of them previously applied in the literature - to check whether the econometric model, the functional form and the definition of physical activity (participation, time, frequency or intensity) condition the results. In particular, we study the probability of exercising, the frequency of participation in the previous week (days of practice), the number of minut..

Sports and Economics

Does Employing Skilled Immigrants Enhance Competitive Performance? Evidence from European Football Clubs

We investigate the effect of hiring skilled immigrant employees on the performance of organizations. This relationship has been difficult to establish in prior work due to theoretical ambiguity, limited data, and inherent endogeneity. We overcome these difficulties by studying European football (soccer) clubs during 1990-2020. Detailed microdata from this setting offers unusual transparency on the migration and hiring of talent and their contribution to collective performance. Further, the industry is characterized by country-level rule changes that govern the number of immigrant players clubs can hire. Using these rule changes as the basis for instrumental variables, we find a positive loca..

Sports and Economics

The Hot Hand in the NBA 3-Point Contest: The Importance of Location, Location, Location

Do basketball players exhibit a hot hand? Results from controlled shooting situations suggest the answer is yes, while results from in-game shooting are mixed. Are the differing results because a hot hand is only present in similar shots or because testing for the hot hand in game situations is difficult? Combining repeated shots in a location and shots across locations, the NBA 3-Point Contests mimics game situations without many of the confounding factors. Using data on the 1986-2019 contests, we find a hot hand, but only within shot locations. Shooting streaks increase a hot hand only if a player makes his previous shot and only within locations. Even making three shots in a row has no ef..

Sports and Economics

All that glitters is not gold. An economic evaluation of the Turin Winter Olympics

This paper provides an ex-post evaluation of the 2006 Turin Winter Olympic Games by means of a synthetic control approach on a number of potential outcomes for an event of such magnitude. We find a positive impact on tourism and the ratio between prices in the centre and in the outskirts of the city. We also find, however, a positive effect on municipal per capita debt. Other variables that are often advertised as the main beneficiaries of the staging of an event such as the Olympics (value added per capita, employment rate, trade openness and the level of house prices) show no significant improvement.

Sports and Economics

Clubs and Networks

A recurring theme in the study of society is the concentration of influence and power that is driven through unequal membership of groups and associations. In some instances these bodies constitute a small world while in others they are fragmented into distinct cliques. This paper presents a new model of clubs and networks to understand the sources of individual marginalization and the origins of different club networks. In our model, individuals seek to become members of clubs while clubs wish to have members. Club value is increasing in its size and in the strength of ties with other clubs. We show that a stable membership profile exhibits marginalization of individuals and that this is ge..

Sports and Economics

Le marché du travail des footballeuses : vers la professionnalisation !

Ce numéro de Connaissance de l'emploi est tiré d'un ouvrage (Arrondel et Duhautois, 2020) et montre comment le football féminin est en cours de structuration et tend vers la professionnalisation. Si le football masculin a atteint un certain régime d'équilibre dans son fonctionnement, au niveau de ses compétitions, tant nationales qu'internationales, et de ses clubs, il n'en est pas de même, pour l'instant, du football féminin : ses structures sont encore en évolution. Certains grands pays de football ne se sont lancés que récemment dans la professionnalisation de leur championnat féminin : en Europe, l'Angleterre en 2018 et bientôt l'Italie et l'Espagne (à partir de 2022). Dans..

Sports and Economics

Le marché du travail des footballeuses : vers la professionnalisation !

Ce numéro de Connaissance de l'emploi est tiré d'un ouvrage (Arrondel et Duhautois, 2020) et montre comment le football féminin est en cours de structuration et tend vers la professionnalisation. Si le football masculin a atteint un certain régime d'équilibre dans son fonctionnement, au niveau de ses compétitions, tant nationales qu'internationales, et de ses clubs, il n'en est pas de même, pour l'instant, du football féminin : ses structures sont encore en évolution. Certains grands pays de football ne se sont lancés que récemment dans la professionnalisation de leur championnat féminin : en Europe, l'Angleterre en 2018 et bientôt l'Italie et l'Espagne (à partir de 2022). Dans..

Sports and Economics

Revisiter l’innovation : la vulnérabilité organisationnelle des PME innovantes dans le secteur des sports outdoor

While innovating is likely to procure competitive advantage within the industry of sports goods, it is also a risky activity which may lead to damaging consequences for companies. It therefore seems relevant to take an interest in the potential detrimental effects of innovation processes within small, particularly creative, companies in the sports sector. In this paper, we seek to know if, and how, engaging in an innovation process leads to singular forms of organizational vulnerability. Case studies were carried out in five small or medium-sized French companies specializing in the outdoors. We conducted a total of 48 interviews with different actors in the innovation processes, accompanied..

Sports and Economics

Gambits: Theory and Evidence

Gambits are central to human decision making. Our goal is to provide a theory of Gambits. A Gambit is a combination of psychological and technical factors designed to disrupt predictable play. Chess provides an environment to study Gambits and behavioral economics. Our theory is based on the Bellman optimality path for sequential decision making. This allows us to calculate the Q values of a Gambit where material (usually a pawn) is sacrificed for dynamic play. On the empirical side, we study the effectiveness of a number of popular chess Gambits. This is a natural setting as chess Gambits require a sequential assessment of a set of moves (a.k.a. policy) after the Gambit has been accepted. O..

Sports and Economics

Traders in a Strange Land: Agent-based discrete-event market simulation of the Figgie card game

Figgie is a card game that approximates open-outcry commodities trading. We design strategies for Figgie and study their performance and the resulting market behavior. To do this, we develop a flexible agent-based discrete-event market simulation in which agents operating under our strategies can play Figgie. Our simulation builds upon previous work by simulating latencies between agents and the market in a novel and efficient way. The fundamentalist strategy we develop takes advantage of Figgie's unique notion of asset value, and is, on average, the profit-maximizing strategy in all combinations of agent strategies tested. We develop a strategy, the "bottom-feeder", which estimates value by..

Sports and Economics

Does Certainty on the Winner Diminish the Interest in Sport Competitions? The Case of Formula One

The literature acknowledges \Uncertainty of Outcome" (UO) as a major factor to explain the degree of interest that sporting competitions draw from fans and the general public. Uncertainty about the championship winner is crucial insofar as nancial success depends on the capacity to attract potential consumers of spectacle. This paper focusses on one aspect of UO and examines to what extent reductions in the interest of followers is due to the removal of uncertainty about the world drivers' champion in Formula One. To study how certainty on the winner undermines the degree of attention generated by the Formula One world drivers' championship, we rely on two alternative indexes | similar altho..

Sports and Economics

Multiple Equilibria and Unsustainable Runs in Major League Baseball: More Evidence

Teams that operate in professional sports leagues often display a cyclical pattern in team winning percentages that are driven by the payroll choices of owners that are inconsistent with a single, stable equilibrium. Two explanations emerge: a stable equilibrium that is shifting over time due to shifts of the revenue or payroll function; or moving between two stable equilibriums. We employ the Bounds test for cointegration between relative team revenues and payrolls to detect multiple equilibria in a sample of Major League Baseball teams over the 1990-2018 seasons. The results suggest the possibility of multiple equilibria for five teams even after accounting for moves to new stadiums that s..

Sports and Economics

Broadcasting revenue sharing after cancelling sports competitions

The COVID-19 pandemic forced the partial or total cancellation of most sports competitions worldwide. Sports organizations crucially rely on revenues raised from broadcasting. How should the allocation of these revenues be modified when sports leagues are cancelled? We aim to answer that question in this paper by means of the axiomatic approach.

Sports and Economics

Network structure and governance in sport clusters: a mixed methods analysis

Research question: This study contributes to our understanding of how network structures influence cluster governance and consequently cluster outcomes. We investigate the relational structure of cross-sectoral sport clusters and how these influence network governance. Research methods: We employed a mixed methods approach, combining qualitative research data and social network analysis (SNA). Forty-nine interviews were conducted with employees from the surfing clusters in Aquitaine (France) and Torquay (Australia). The interview transcripts were subjected to two rounds of coding prior to SNA on an aggregated actor level. Results and findings: Findings from both clusters show the core is com..

Sports and Economics

Self-organization: Passion for a sport or passion for an animal

Sports and Economics

From Micro to Macro Gender Differences: Evidence from Field Tournaments

Women are under-represented in top positions, such as Business, Politics and Science. The same under-representation occurs in chess, providing us with a unique opportunity to analyze this phenomenon. We find a macro gender gap in every country: there are fewer female than male players, especially at the top, and women have lower average rankings. One contribution of this paper is to link the macro gender gap to micro gender differences. Comparing millions of individual games, we find that women's scores are about 2% lower than expected when playing a man rather than a woman with identical rating, age and country. Using a simple theoretical model, we explain how a small micro gap may affect w..

Sports and Economics

Does Sports Make People Happier, or Do Happy People More Sports?

We contribute to the happiness literature by analyzing the causal relationship between sports and happiness. Using longitudinal data from the German Socio- Economic Panel (GSOEP), we find a positive correlation between sports participa- tion and reported life satisfaction. This relationship is stronger at younger and older ages than in middle age, and for people in bad health compared to those in average health. We further provide evidence for both causal directions. It turns out that the causal impact of engaging in sports on happiness is about four times higher than the effect of happiness on engaging in sports.

Sports and Economics

From Micro to Macro Gender Differences: Evidence from Field Tournaments

Women are under-represented in top positions, such as Business, Politics and Science. The same under-representation occurs in chess, providing us with a unique opportunity to analyze this phenomenon. We find a macro gender gap in every country: there are fewer female than male players, especially at the top, and women have lower average rankings. One contribution of this paper is to link the macro gender gap to micro gender differences. Comparing millions of individual games, we find that women’s scores are about 2% lower than expected when playing a man rather than a woman with identical rating, age and country. Using a simple theoretical model, we explain how a small micro gap may affect..

Sports and Economics

The impact of social pressure of differing audience size on referees and team performances from a North American perspective

The COVID-19 pandemic provides a natural experiment to comprehensively test the effect of crowds on both referees and players. Our aim is to examine this from a North-American perspective using data from three major leagues: National Basketball Association (NBA), National Football League (NFL) and National Hockey League (NHL). In all three leagues in the 2020-2021 season, matches were played either under empty or partially loaded stadiums. We find that the audience size for NBA substantially affects referee decisions by increasingly favouring the home team as crowd size grows. No such effect is observed for NHL or NFL. Nonetheless, with increasing crowd size not only for NBA but also for NHL..

Sports and Economics

The Iron Curtain and Referee Bias in International Football

Using the assignment of referees to European international association football matches played between 2002 and 2016, we ask whether judgements were biased according to the legacy of the Cold War. Referees from post-communist states favoured teams from non-communist states, but there was no evidence of favouritism in the other direction. The out-group bias of referees born behind the Iron Curtain was more significant for less important decisions (e.g., yellow cards vs red cards). The bias was particularly large among referees from the former Soviet Union. It has also diminished over time, perhaps due to increased professionalism in European refereeing, or because memories of the Cold War era..

Sports and Economics

Implementing the BBE Agent-Based Model of a Sports-Betting Exchange

We describe three independent implementations of a new agent-based model (ABM) that simulates a contemporary sports-betting exchange, such as those offered commercially by companies including Betfair, Smarkets, and Betdaq. The motivation for constructing this ABM, which is known as the Bristol Betting Exchange (BBE), is so that it can serve as a synthetic data generator, producing large volumes of data that can be used to develop and test new betting strategies via advanced data analytics and machine learning techniques. Betting exchanges act as online platforms on which bettors can find willing counterparties to a bet, and they do this in a way that is directly comparable to the manner in w..

Sports and Economics

Fairer Chess: A Reversal of Two Opening Moves in Chess Creates Balance Between White and Black

Unlike tic-tac-toe or checkers, in which optimal play leads to a draw, it is not known whether optimal play in chess ends in a win for White, a win for Black, or a draw. But after White moves first in chess, if Black has a double move followed by a double move of White and then alternating play, play is more balanced because White does not always tie or lead in moves. Symbolically, Balanced Alternation gives the following move sequence: After White's (W) initial move, first Black (B) and then White each have two moves in a row (BBWW), followed by the alternating sequence, beginning with W, which altogether can be written as WB/BW/WB/WB/WB... (the slashes separate alternating pairs of moves)...

Sports and Economics

Submission Fees in Risk-Taking Contests

This paper investigates stochastic continuous time contests with a twist: the designer requires that contest participants incur some cost to submit their entries. When the designer wishes to maximize the (expected) performance of the top performer, a strictly positive submission fee is optimal. When the designer wishes to maximize total (expected) performance, either the highest submission fee or the lowest submission fee is optimal.

Sports and Economics

Who benefits from support? The heterogeneous effects of supporters on athletes’ performance by skin color

This paper investigates the effect of supporters on the performance of soccer players by skin color using objective player performance data and an automated skin color recognition algorithm. Due to the COVID-19 restrictions, one third of the games of the highest Italian soccer league 2019/2020 season were played in closed stadiums. I identify a significant increase in the performance of non-white players, relative to white players, when supporters are banned from the stadium. The effect does not differ between home and away games, and players playing in top versus minor teams, while weaker players are impacted more than others.

Sports and Economics

Are sports betting markets semistrong efficient? Evidence from the COVID-19 pandemic

This paper examines whether sports betting markets are semistrong-form efficient — i.e., whether new information is rapidly and completely incorporated into betting prices. We use news on ghost games in the top European football leagues due to the COVID-19 pandemic as a clean arrival of new public information. Because spectators are absent during ghost games, the home advantage is reduced, and we test whether this information is fully reflected in betting prices. Our results show that bookmakers and betting exchanges systematically overestimated a home team’s winning probability during the first period of the ghost games, which suggests that betting markets are, at least tempor..

Sports and Economics

Using Games to Trigger Collective Changes in Natural Resource Management: Conceptual Foundations for Behavioral Change

Sports and Economics

Race to the podium: Separating and conjoining the car and driver in F1 racing

This paper provides a statistical estimate of the breakdown in race outcomes in Formula One races between the two most important inputs: driver skill and car technology. Financial data and racing results from the 2012-19 F1 seasons are used to estimate a combined driver and team censored regression model for each season. Treating each season uniquely allows for the exclusion of weather and track specific variables common to other statistical studies of F1 racing. Our use of financial data provides an answer to the economic question of how should F1 teams allocate their scarce financial resources. The so-called “80-20” rule distinguishing team effects and driver effects is found to be a v..

Sports and Economics

How big is home advantage at the Olympic Games?

We revisit the magnitude of home advantage at the Summer and Winter Olympic Games, looking back all the way to Athens in 1896. By comparing a host country’s success with their performances in previous and subsequent games, we find that home advantage has declined over time as participation and the diversity of competition have increased. Hosts of the Summer Olympics between 1988 and 2016 enjoyed a two-percentage-point boost in their shares of medals and finalists, compared with their performances overseas, in both men's and women's events. In this same contemporary period, the home advantage effect at the Winter Olympics was around fifty percent larger in men's events but non-existent..

Sports and Economics

Organizational structures and efficiency of Moroccan professional football clubs

Regardless of their structure and form (public/private), organizations are often faced with structural choices. These choices can be the result of their history, their activity, the people involved or the strategies pursued. At each stage, managers have to make structural choices that allow them to be in the best possible configuration to be effective. Therefore, these sports organizations must have a structure that allows them to ensure the best possible coordination between departments. The objective of this paper is to identify structural models and examine the relationship between structure and efficiency in Moroccan soccer clubs. The three organizational design parameters: formalization..

Sports and Economics