nep-spo New Economics Papers
on Sports and Economics
Issue of 2009‒10‒17
four papers chosen by
Joao Carlos Correia Leitao
Polytechnic Institute of Portalegre and Technical University of Lisbon

  1. Brazilian Football League Technical Efficiency: A Bootstrap Approach By Carlos Pestana Barros; Albert Assaf; Fabio Sá-Earp
  2. Competition and Cooperation between Professional Sports Franchises: The Impact on Ticket Prices By Pelnar, Gregory
  3. Nerves of Steel? Stress, Work Performance and Elite Athletes By David A. Savage; Benno Torgler
  4. Anomalies in Tournament Design: The Madness of March Madness By Robert Baumann; Victor Matheson; Cara Howe

  1. By: Carlos Pestana Barros; Albert Assaf; Fabio Sá-Earp
    Abstract: This paper introduces a two stage bootstrapped DEA-Data Envelopment analysis model to analyze the technical efficiency of Brazilian first league football clubs, using recent input and output data over the period 2006-2007. In the first stage a bootstrapped DEA model is used to derive the efficiency scores and in the second stage, the determinants of technical efficiency are identified using a bootstrapped truncated regression. Results from the model estimation show that the efficiency ranking is mixed with some clubs of similar characteristics showing different performance. Factors which contributed to these results as well as other policy implications are provided.
    Keywords: Football, Brazil, Bootstrap, DEA, Technical Efficiency
    JEL: E4 E5 G2
    Date: 2009–04
  2. By: Pelnar, Gregory
    Abstract: An important issue in many antitrust lawsuits involving professional sports leagues and their member teams is the extent to which franchises within the same, and across different, professional sports leagues compete with one another for fans and advertisers. Complicating the issue is the fact that some sports franchises also cooperate with other franchises in the same or different leagues by, for example, participating in a joint venture to build and operate the stadium in which they will play their games or a regional sports network joint venture to televise their games. An extreme form of cooperation is common ownership: some franchises in different sports leagues have common ownership. This study investigates the impact of competition and cooperation among the franchises of the four major professional sports leagues (i.e., the National Football League, National Basketball Association, National Hockey League, and Major League Baseball) on ticket prices for the 2008 season. The regression results suggest that the existence of one or more rival sports franchises in the same metropolitan area does not have a statistically significant impact on ticket prices. On the other hand, there is at best weak evidence that cooperation between sports franchises impacts ticket prices. These findings are consistent with a number of alternative hypotheses.
    Keywords: sports leagues; antitrust; National Football League; National Basketball Association; National Hockey League; Major League Baseball
    JEL: L11 L83 L40
    Date: 2009–10–03
  3. By: David A. Savage; Benno Torgler
    Abstract: There is a notable shortage of empirical research directed at measuring the magnitude and direction of stress effects on performance in a controlled environment. One reason for this is the inherent difficulties in identifying and isolating direct performance measures for individuals. Additionally most traditional work environments contain a multitude of exogenous factors impacting individual performance, but controlling for all such factors is generally unfeasible (omitted variable bias). Moreover, instead of asking individuals about their self-reported stress levels we observe workers' behavior in situations that can be classified as stressful. For this reason we have stepped outside the traditional workplace in an attempt to gain greater controllability of these factors using the sports environment as our experimental space. We empirically investigate the relationship between stress and performance, in an extreme pressure situation (football penalty kicks) in a winner take all sporting environment (FIFA World Cup and UEFA European Cup competitions). Specifically, we examine all the penalty shootouts between 1976 and 2008 covering in total 16 events. The results indicate that extreme stressors can have a positive or negative impact on individuals' performance. On the other hand, more commonly experienced stressors do not affect professionals' performances.
    Keywords: performance; stressors; sport; behavioral economics; work-related stress
    JEL: D80 D81 J81 Z13
    Date: 2009–09
  4. By: Robert Baumann (Department of Economics, College of the Holy Cross); Victor Matheson (Department of Economics, College of the Holy Cross); Cara Howe (Department of Economics, College of the Holy Cross)
    Abstract: Tournament design is of crucial importance in competitive sports. The primary goal of effective tournament design is to provide incentives for the participants to maximize their performance both during the tournament and in the time period leading up to the tournament. In spectator sports, a secondary goal of tournament design is to also promote interesting match ups that generate fan interest. Seeded tournaments, in general, promote both goals. Teams or individuals with strong performances leading up to a tournament receive higher seeds which increase their chances of progressing further in the tournament. Furthermore, seeding ensures that the strongest teams or players are most likely to meet in the final rounds of the tournament when fan interest is at its peak. Under some distributions of team or player skill, however, a seeding system can introduce anomalies that could affect incentives. Our analysis of the NCAA men’s basketball tournament uncovers such an anomaly. The seeding system in this tournament gives teams with better success in the regular season more favorable first round match ups, but the tournament is not reseeded as the games progress. Therefore, while higher seeds progress to the 2nd round of the tournament at uniformly higher rates than lower seeds, this relationship breaks down in later rounds. We find that 10th and 11th seeds average more wins and typically progress farther in the tournament than 8th and 9th seeds. This finding violates the intended incentive structure of seeded tournaments.
    Keywords: basketball, tournament design, sports, NCAA
    JEL: L83 D02
    Date: 2009–10

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