nep-spo New Economics Papers
on Sports and Economics
Issue of 2017‒10‒22
three papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Choking Under Pressure in Front of a Supportive Audience: Evidence from Professional Biathlon By Harb-Wu, Ken; Krumer, Alex
  2. Validity and Reliability of Contingent Valuation and Life Satisfaction Measures of Welfare: An Application to the Value of National Olympic Success By Brad R. Humphreys; Bruce K. Johnson; John C. Whitehead
  3. Hosting a Mega-Event: Is it Good or Bad for the Economy? General Equilibrium Models as a Litmus Paper Test By Martina Sartori

  1. By: Harb-Wu, Ken; Krumer, Alex
    Abstract: Performing in front of a supportive audience increases motivation. However, it also creates a psychological pressure, which may impair performance, especially in precision tasks. In this paper we exploit a unique setting in which professionals compete in a real-life contest with high monetary rewards in order to assess how they respond to the presence of a supportive audience. Using the task of shooting in sprint competitions of professional biathlon events over the period of sixteen years, our fixed effects estimations show that high-profile biathletes miss significantly more shots when competing in front of a supportive audience. Our results are in line with the hypothesis that a friendly environment induces individuals to choke when performing skill-based tasks.
    Keywords: Choking under pressure; Paradoxical performance effects on incentives; Social pressure; Biathlon; Home advantage
    JEL: M54 Z13
    Date: 2017–10
  2. By: Brad R. Humphreys; Bruce K. Johnson; John C. Whitehead
    Abstract: The contingent valuation method (CV) has long been used to estimate nonmarket values of environmental and other public goods and amenities. Recently, life satisfaction (LS) measures have been used to estimate nonmarket values. This paper empirically compares CV and LS measures of welfare. We elicit willingness-to-pay (WTP) estimates for medals won by Canadian athletes and LS measures using Canadian survey data collected before and after the 2010 Winter Olympic Games. These data permit comparative analyses of reliability and validity of CV and LS measures. Both exhibit econometric reliability. CV and LS WTP estimates for medals increases after the Olympics. CV measures of WTP exhibit temporal reliability but LS measures of welfare lack temporal reliability and are significantly greater than CV measures. Key Words: contingent valuation method; life satisfaction method; willingness-to-pay; validity reliability
    JEL: C18 C52 D12 D62 I15 Q51
    Date: 2017
  3. By: Martina Sartori (Department of Economics, University Of Venice Cà Foscari)
    Abstract: Hosting mega-events has long been regarded as an opportunity for economic growth, creating long-lasting benefits and attaining international recognition. Recently, both the scientific community and the public opinion at large have turned much more skeptical about the impact of mega-events. Why is it that some events appear successful and other disasters? Why the perception of impacts has changed over time? To answer these (and other) questions, there is a need to go beyond the simple narratives and “stylized facts”, to undertake some serious scientific investigation, based on verifiable data and testable models. Despite the fact that most recent studies use the same modeling tool, namely some Computable General Equilibrium (CGE) model, results are sometimes contradictory, thereby hindering the trustiness of the economic analysis for policy guidance. In this paper, we show that results are different because assumptions are different and because the range of effects considered is different, even when the same model is employed. Furthermore, some critical hypotheses are not often clearly stated. We advocate some kind of standardization in the process of model building for the economic assessment of mega-events. Only a transparent and replicable model exercise can serve as a “litmus paper”, to ascertain whether hosting a mega-event is good or bad for an economy.
    Keywords: Computable general equilibrium modeling, methodological issues, mega-events economic impact assessment
    JEL: C68
    Date: 2017

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