nep-spo New Economics Papers
on Sports and Economics
Issue of 2015‒10‒25
two papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Teams’ Reponses to Changed Incentives: Evidence from Rugby’s Six Nations Championship By Vincent (Vincent Peter) Hogan; Patrick Massey
  2. Internal Promotion in Competitive Sports: Evidence from the English Premier League By Mihailo Radoman; Marcel-Cristian Voia

  1. By: Vincent (Vincent Peter) Hogan; Patrick Massey
    Abstract: The paper analyses teams’ responses to rule changes designed to encourage more entertaining play in Rugby Union’s Six Nations Championship. We use a data set of all scores in the competition since 1883 to analyse the impact of rule changes on teams’ strategic decisions. We find that increasing the points for a try leads to more tries per match. We also find evidence that teams may be prepared to concede penalties, which are worth fewer points in order to prevent more costly tries. The switch to a winner takes all format in 1994 also led to more tries being scored. Unlike most other major rugby competitions, the Six Nations does not award bonus league points for scoring a certain number of tries and we consider whether this would increase try scoring. Our results may have practical applications given ongoing concerns about a decline in try scoring in the Six Nations.
    Keywords: Sports economics
    Date: 2015–09
  2. By: Mihailo Radoman (Canadian Revenue Agency); Marcel-Cristian Voia (Department of Economics, Carleton University)
    Abstract: The analysis of English Premier League clubs' reliance on internal versus external sources for new additions to the first-team is motivated by relevant labor economics literature. We consider two dimensions for analysis: (i) the extensive margin that drives the selection of youth players in the first team, and (ii) the intensive margin that looks at their career lifespan once selected. Two uniquely created data sets are utilized to establish robust results in support of the notion that more reputable youth programs provide greater first-team opportunities through internal hiring. Foreign sourced players become more prevalent in the league after the Bosman ruling, and their probability of selection is positively correlated with club stature. Survival analysis results validate prior results in terms of youth training reputation of certain clubs, and establishes a presence of heterogeneity at youth club level that signals differences in player career prospects generated by their youth training. Further, when the unobserved heterogeneity is modelled using discrete finite mixtures we get new insights into the role unobservables in the analysis. In particular, two types of players are identified in the data, one type that represents 33% is the one that drives the exits of the youth players. In addition, this model shows that the Bosman ruling positively impacts the career duration of youth players, as opposed to its negative effect on first-team selection.
    Keywords: internal promotion, external hiring, binary resposnse models, Bosman ruling, duration models
    JEL: J21 J24 J61 C14 C41 C52
    Date: 2015–10–16

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