nep-spo New Economics Papers
on Sports and Economics
Issue of 2015‒09‒11
four papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Testing semi-strong efficiency in a fixed odds betting market: Evidence from principal European football leagues. By Bernardo, Giovanni; Ruberti, Massimo; Verona, Roberto
  2. Long-run health effects of sports and exercise in Canada By Sari, Nazmi;
  3. Gender Differences in Reaction to Psychological Pressure: Evidence from Tennis Players By De Paola, Maria; Scoppa, Vincenzo
  4. An Analysis of Drivers of Mega-Events in Emerging Economies By Robert Baade; Victor Matheson

  1. By: Bernardo, Giovanni; Ruberti, Massimo; Verona, Roberto
    Abstract: In this paper, we try to measure the semi-strong efficiency of the sports betting market. In particular, we aim to understand whether the efficiency of the market is realized in the case of fixed odds provided by bookmakers on the four major European football championships. By examining the trends of odds in the event of some major change in expectations about the teams’ results, i.e. when a team’s coach is replaced, we attempt to verify the argument that a profitable betting strategy for the bettor is likely possible. In this case, the market that we are taking into account will be inefficient.
    Keywords: Market efficiency,semi-strong efficiency, sports betting market, fixed odds,
    JEL: C80 D40 D43
    Date: 2015–09–02
  2. By: Sari, Nazmi;
    Abstract: Even though insufficient participation in physical activity is shown to be one of the major contributors to chronic diseases, and poor health, participation in physical activity still remains to be substantially low in developed countries including Canada. In this paper, we examine the long-run health effects of participation in sports and exercise among inactive Canadian adults. Based on informative Canadian panel data and semiparametric matching estimation, we show that participation in sports and exercise generally improves physical health and mental well-being of individuals. While this effect is statisti¬cally significant and persistent for men, we do not find a similar effect for women. Our results also indicate that positive health effects are only achieved with a level of physical activity that is larger than the current national and international health o51 pages
    Keywords: Physical activity, sports, exercise, subjective health, mental health, treatment effect
    JEL: I12 I18 L83 C21 C23
    Date: 2015–09
  3. By: De Paola, Maria (University of Calabria); Scoppa, Vincenzo (University of Calabria)
    Abstract: Using data on about 35,000 professional tennis matches, we test whether men and women react differently to psychological pressure arising from the outcomes of sequential stages in a competition. We show that, with respect to males, females losing the first set are much more likely to play poorly the second set, choking under the pressure of falling behind and receiving negative feedback. The gender differential is stronger in high stakes matches. On the other hand, when players are tied in the third set we do not find any gender difference in players' reactions: this suggests that females do not tend to choke if they do not lag behind. These results are robust controlling for measures of abilities and fitness of players, such as players' rankings, players' ex-ante winning probability, players' rest, players' and tournaments' fixed effects.
    Keywords: gender differences, psychological pressure, choking under pressure, feedback, tennis
    JEL: J16 D03 L83
    Date: 2015–08
  4. By: Robert Baade (Department of Economics and Business, Lake Forest College); Victor Matheson (Department of Economics, College of the Holy Cross)
    Abstract: Developing countries that host mega-events such as the Olympic Games and World Cup invest enormous sums in stadiums and collateral infrastructure projects. The paper examines the motivations of countries to host these events and the typical economic outcome for those host sites lucky(?) enough be awarded the games. For both efficiency and equity reasons, these events are risk propositions at best, and they generally represent an even worse investment for developing countries than for industrialized nations.
    Keywords: sports, stadiums, development, impact analysis, Olympics, World Cup, tourism
    JEL: L83 O18 R53
    Date: 2015–09

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