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on Sports and Economics |
| By: | Jacob Goss; Daniel Mangrum |
| Abstract: | Since 2018, more than thirty states have legalized mobile sports betting, leading to more than a half trillion dollars in wagers. In our recent Staff Report, we examine how legalized sports betting affects household financial health by comparing betting activity and consumer credit outcomes between states that legalized to those that have not. We find that legalization increases spending at online sportsbooks roughly tenfold, but betting does not stop at state boundaries. Nearby areas where betting is not legal still experience roughly 15 percent the increase of counties where it is legal. At the same time, consumer financial health suffers. Our analysis finds rising delinquencies in participating states, with spillover effects across state lines. What is more, even though the share of people taking up sports betting after legalization is small (roughly 3 percent of the population), overall credit delinquency rises by about 0.3 percentage points. Our findings suggest that sports betting can have dramatic implications for household financial stability. |
| Keywords: | sports betting; consumer credit; spatial spillovers; state taxation |
| JEL: | D14 H71 H73 L83 |
| Date: | 2026–03–25 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednls:102938 |
| By: | Murat Erkurt; Emre Ozdenoren |
| Abstract: | We study contests in which players sequentially search for a high score at a cost per draw, with unlimited opportunities, no recall, and the best score wins a prize. In the unique symmetric equilibrium, the acceptance probability depends only on the number of players, the cost, and the prize, not on the distribution, and total expenditure equals the prize. These properties extend to multiple prizes and hierarchical team competition. Efficiency relative to a planner is determined by the hazard rate of the distribution. With a finite horizon, a selectivity effect can dominate the discouragement effect when search costs are low. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.20683 |
| By: | Christopher D. Long |
| Abstract: | For independent multi-outcome events under multiplicative parlay pricing, we give a short exact proof of the optimal Kelly strategy using the implicit-cash viewpoint. The proof is entirely eventwise. One first solves each event in isolation. The full simultaneous optimizer over the entire menu of singles, doubles, triples, and higher parlays is then obtained by taking the outer product of the one-event Kelly strategies. Equivalently, the optimal terminal wealth factorizes across events. This yields an immediate active-leg criterion: a parlay is active if and only if each of its legs is active in the corresponding one-event problem. The result recovers, in a more transparent state-price form, the log-utility equivalence between simultaneous multibetting and sequential Kelly betting. We then study what is lost when one forbids parlays and allows only singles. In a low-edge regime and on a fixed active support, the exact parlay optimizer supplies the natural reference point. The singles-only problem is a first-order truncation of the factorized wealth formula. A perturbative expansion shows that the growth-rate loss from forbidding parlays is $\OO(\eps^4)$, while the optimal singles stakes deviate from the isolated one-event Kelly stakes only at cubic order. This yields a clean explanation of Whitrow's empirical near-proportionality phenomenon: the simultaneous singles-only optimizer is obtained from the isolated eventwise optimizer by an event-specific cubic shrinkage, so the portfolios agree through second order and differ only by a small blockwise drag. |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2603.26620 |
| By: | S. Courtright; G. Gary R. Thurgood; H. Liao Huiyao; T. Timothy Morgan; J. Wang (Audencia Business School) |
| Abstract: | Leader emergence is a critical organizational phenomenon, influenced by various individual attributes. One such attribute—often overlooked by scholars and practitioners—is physical attractiveness. This study provides a comprehensive meta-analysis of the beauty bias and its relationship to leader emergence. We first review implicit leadership and status generalization theories as the dominant frameworks explaining this bias. Next, we assess the magnitude of the physical attractiveness–leader emergence relationship and test the "beauty is beastly" effect by evaluating leader gender as a moderator. We also identify two key mechanisms—perceived warmth and perceived competence—that explain this relationship. Additionally, we explore the robustness of the beauty bias across different contexts, including observer characteristics, leadership roles, and national culture. Our findings confirm that physical attractiveness is significantly related to leader emergence, primarily through perceptions of warmth, but also through perceptions of competence. This relationship holds equally for male and female leaders and is stronger in informal leadership contexts. It is slightly more pronounced among college students than full-time employees and in collectivist rather than individualistic national cultures, yet remains equally strong across executive and non-executive leadership roles. Overall, our findings highlight the strength and consistency of the physical attractiveness–leader emergence relationship, underscoring the need for organizations to mitigate the beauty bias from influencing decisions around leader emergence. |
| Keywords: | cognition/cognitive processes, individual differences, leadership, meta-analysis |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05537264 |
| By: | Nguyen, Duc Manh (Monash University) |
| Abstract: | This study investigates how the experience of conflict and the framing of post-conflict identity affect trust. In a pre-registered laboratory experiment in Vietnam, implemented shortly after the celebration of the 50th anniversary of the end of the war, 534 partici- pants were randomly assigned to either a treatment group that engaged in a multi-round competitive game intended to simulate conflict (called the “Attacker/Defender†game) (Gross et al., 2022) before playing the Trust game under four identity framings: paired with someone from the opposing group of the conflict, the same group, with no information about partner’s prior group, or with a new, neutral group identity designed to symbolically represent an absence of relation with conflict, or a control group which only take part in the Trust Game. We find that playing the Attacker/Defender game (i.e., being exposed to conflict in the lab) lowers trust by 13–21%, regardless of which side participants were in the conflict. |
| Keywords: | Trust ; Intergroup Conflict ; Identity Framing ; Laboratory Experiment JEL classifications: D91 ; Z13 ; D83 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:wrkesp:94 |