nep-spo New Economics Papers
on Sports and Economics
Issue of 2009‒01‒24
two papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Does competition enhance performance or cheating? A laboratory experiment By Christiane Schwieren; Doris Weichselbaumer
  2. PILOTs and Public Policy: Steering through the Economic Ramifications By Brad R. Humphreys; Victor Matheson

  1. By: Christiane Schwieren (University of Heidelberg); Doris Weichselbaumer
    Abstract: In this paper we experimentally test whether competing for a desired reward does not only affect individuals’ performance, but also their tendency to cheat. Recent doping scandals in sports as well as forgery and plagiarism scandals in academia have been partially explained by „competitive pressures“, which suggests a link between competition and cheating. In our experiment subjects conduct a task where they have the possibility to make use of illegitimate tools to better their results. We find that women react much stronger to competitive pressure by increasing their cheating activity while there is no overall sex difference in cheating. However, the effect of competition on women’s cheating behavior is entirely due to the fact that women, on average, are doing worse with respect to the assigned task. Indeed we find that it is the ability of an individual to conduct a particular task and not sex that crucially affects the reaction to competition. Poor performers significantly increase their cheating behavior under competition which may be a face-saving strategy or an attempt to retain a chance of winning.
    Keywords: competition, tournament, piece rate, cheating, experiment
    JEL: C91 J24 J31 M52
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:jku:nrnwps:2008_05&r=spo
  2. By: Brad R. Humphreys (Department of Economics, University of Alberta); Victor Matheson (Department of Economics, College of the Holy Cross)
    Abstract: A recent IRS ruling has allowed the new Yankees Stadium construction project to be financed by a tax exempt bond offering backed by payments in lieu of taxes (PILOTS). This decision appears to contradict the spirit of the Tax Reform Act of 1986. From an economic standpoint, the question is whether it is desirable to significantly expand the number of projects eligible for tax subsidies in exchange for a more direct connection between those receiving benefits from the projects and those paying the taxes, or should the state and municipal bond tax exemption narrowly extend only to true public works even if this means taxing the populace more broadly when certain segments of the population are more apt to benefit from certain projects.
    Keywords: sports, stadiums, tax subsidies, economic impact
    JEL: O18 R53 L83 H25 H42 H81
    Date: 2008–12
    URL: http://d.repec.org/n?u=RePEc:hcx:wpaper:0817&r=spo

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