2011-08-02 papers

on Sports and Economics

Issue of 2011–08–02
two papers chosen by
Humberto Barreto, DePauw University

Trading Effects of the National Teams¡¯ Showcase By Veysel Avsar; Umut Unal
Chicken or Checkin’? Rational Learning in Repeated Chess Games By Gerdes, Christer; Gränsmark, Patrik; Rosholm, Michael

Trading Effects of the National Teams¡¯ Showcase

By:	Veysel Avsar (Department of Economics, Florida International University); Umut Unal (Department of Economics, Florida International University)
Abstract:	This study analyzes the trading effects of FIFA World Cup in two dimensions. First, focusing on the host countries¡¯ trade and estimating both static OLS and dynamic panel estimations, we show that participating in the World Cup significantly increases exports from the participant countries to the host countries, relative to a control group of non-participants. We also obtain the same pattern for the exports originating from the host countries to the articipants. Second, we demonstrate that trade is reasonably higher for host-participant pairs compared to other country pairs both in the years of the World Cup and permanently over the sample of our data. We offer a number of plausible arguments and important channels for our findings.
Keywords:	Trade, Export, Import, World Cup, Large sports events, Host, Participant
JEL:	F19 L83
Date:	2011–07
URL:	https://d.repec.org/n?u=RePEc:fiu:wpaper:1107

Chicken or Checkin’? Rational Learning in Repeated Chess Games

By:	Gerdes, Christer (SOFI, Stockholm University); Gränsmark, Patrik (SOFI, Stockholm University); Rosholm, Michael (Aarhus School of Business)
Abstract:	We examine rational learning among expert chess players and how they update their beliefs in repeated games with the same opponent. We present a model that explains how equilibrium play is affected when players change their choice of strategy when receiving additional information from each encounter. We employ a large international panel dataset with controls for risk preferences and playing skills whereby the latter accounts for ability. Although expert chess players are intelligent, productive and equipped with adequate data and specialized computer programs, we find large learning effects. Moreover, as predicted by the model, risk-averse players learn substantially faster.
Keywords:	rational learning, risk aversion, beliefs
JEL:	C73 D83
Date:	2011–07
URL:	https://d.repec.org/n?u=RePEc:iza:izadps:dp5862

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