nep-spo New Economics Papers
on Sports and Economics
Issue of 2014‒06‒22
two papers chosen by
Joao Carlos Correia Leitao
Universidade da Beira Interior and Universidade de Lisboa

  1. Rugby League in Australia between 2001 and 2012: an Analysis of Home Advantage and Salary Cap Violations By Thomas Longden; Greg Kannard
  2. Axiomatizing Multi-Prize Contests: A Perspective from Complete Ranking of Players By Jingfeng Lu; Zhewei Wang;

  1. By: Thomas Longden (Fondazione Eni Enrico Mattei, Euro-Mediterranean Centre for Climate Change and Metrical Analysis); Greg Kannard
    Abstract: Within this paper, we review whether incidences of salary cap circumvention within the Australian professional rugby league competition led to improved home team wins during the period between 2001 and 2012. In doing so, we show that while the salary cap breach amounts can be attributed to an improved home team win record in the case of the Melbourne Storm, success during the period can also be attributed with other factors such as the management of the club, talent identification and the quality of the coach and/or captain. This raises an important issue surrounding the effectiveness of a salary cap to create a level playing field when uncertainty over the quality and performance of players exists. A notable role of the salary cap violations was the retention of a core group of players that were instrumental in the success that occurred in the 2007 season. As part of the analysis we also review home team advantage. A focus on the NRL is justified due to the peculiar nature of having multiple stadium types within the same city and team. For the year 2012 we find that a match at a traditional Sydney stadium against a non-Sydney team had the highest probability of a home team win when the two teams have had a similar level of success during the season.
    Keywords: Salary Cap, Home Advantage, Rugby League
    JEL: J31 D39 C23
    Date: 2014–05
  2. By: Jingfeng Lu (Department of Economics, National University of Singapore); Zhewei Wang (School of Economics, Shandong University);
    Abstract: Multiple prizes are usually awarded in contests (e.g., internal promotions, school admissions, sports, etc), and players exert effort to increase their chances for winning a higher prize. A multi-prize contest model must provide each player's probabilities of winning each prize as functions of all players.efforts. This paper generalizes the ax-iomatization framework of Skaperdas (1996) and Clark and Riis (1998a) by considering the probabilities of complete rankings of players for their given efforts. Necessary and sufficient axioms are identi.ed to axiomatize the widely adopted multi-prize nested lottery contest of Clark and Riis (1996a), as well as its mirror image, the "reverse"nested lottery contests recently proposed by Fu, Lu and Wang (2014). The axioms of Skaperdas (1996) and Clark and Riis (1998a) need to be appropriately reformulated (and thus reinterpreted) from the ranking perspective. The axiomatization requires one new axiom of .Independence from Irrelevant Ranks.(IIR) if and only if the contest in- volves (strictly) more than three players. Our axiomatization framework integrates the single-prize and multi-prize lottery contest models, it also the conventional and reverse nested lottery contests and further illustrates their .mirror image.relationship.
    JEL: O11 N45
    Date: 2014–06

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