nep-spo New Economics Papers
on Sports and Economics
Issue of 2009‒11‒27
two papers chosen by
Joao Carlos Correia Leitao
Polytechnic Institute of Portalegre and Technical University of Lisbon

  1. Labor Market Discrimination and Capital Investment: The Effects of Fan Discrimination on Stadium Investment By Bodvarsson, Örn B.; Humphreys, Brad R.
  2. Gender Differences Disappear with Exposure to Competition By Christopher Cotton; Frank McIntyre; Joseph Price

  1. By: Bodvarsson, Örn B. (St. Cloud State University); Humphreys, Brad R. (University of Alberta)
    Abstract: We investigate the possibility that labor market discrimination affects economic outcomes in the complementary capital market. Previous research contains ample theoretical justification, and empirical evidence, that discrimination affects wages and employment in labor markets. However, the effects of discrimination against minority labor on transactions in markets for other inputs used in production are not known. We develop a model of the optimal capital stock put in place in the presence of customer discrimination and test this model using data on sports facility construction over the period 1950-2004. The empirical evidence suggests that teams in cities with more racial segregation spend less on sports facilities, confirming the predictions of the model about the effect of customer discrimination on capital investment.
    Keywords: racial discrimination, capital stock, complementarity, stadium financing
    JEL: J15
    Date: 2009–11
  2. By: Christopher Cotton (Department of Economics, University of Miami); Frank McIntyre (Department of Economics, Brigham Young University, Provo, UT 84602); Joseph Price (Department of Economics, Brigham Young University, Provo, UT 84602)
    Abstract: Past research nds that males outperform females in competitive situations. Using data from multiple-round math tournaments, we verify this nding during the initial round of competition. The performance gap between males and females, however, disappears after the rst round. In later rounds, only math ability (not gender) serves as a signicant predictor of performance. Several possible explanations are discussed. The results suggest that we should be cautious about using data from one-round experiments to generalize about behavior.
    Keywords: Competitiveness,Gender Differences, Field Experiment
    JEL: J16 C93
    Date: 2009–09

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