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on Sports and Economics |
| By: | Thorsten Schank; Vivien Voigt; Christian Orthey |
| Abstract: | It is well-established that the home advantage (HA), the phenomenon that on average the local team performs better than the visiting team, exists in many sports. In response to the COVID-19 outbreak, spectators were banned from football stadiums, which we leverage as a natural experiment to examine the impact of stadium spectators on HA. Using data from the first division of the German Bundesliga for seasons 2016/17 to 2023/24, we are the first to focus on a longer time horizon and consider not only the first but all three seasons subject to spectator regulations as well as two subsequent seasons without. We confirm previous studies regarding the disappearance of the HA in the last nine matches of season 2019/20. This drop materialised almost entirely through a reduction of home goals. The HA in season 2020/21 (with spectator ban during most matches) was very close to the pre-COVID-19 season 2018/19, indicating that teams became accustomed to the absence of spectators. For season 2021/22, with varying spectator regulations, we detect a U-shaped relationship between HA and the stadium utilisation rate, where HA increases considerably for matches with medium stadium utilisation which is associated with a larger difference in running distance between the home and away teams. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.12509 |
| By: | Maria Teresa Medeiros Garcia; Tiago Miguel Batista Raimundo |
| Abstract: | This paper examines how player transfers influence the stock prices of publicly traded football clubs through an event study approach. The analysis focus on five prominent European teams—Manchester United, Juventus, Borussia Dortmund, Olympique Lyon, and Ajax—focusing on 230 player transactions that occurred between 2018 and 2023. The study assesses abnormal returns (AR) and cumulative abnormal returns (CAR) within a 10-day event window, encompassing five days prior to and following the announcements of transfers. Findings indicate that high-value transfers typically result in positive abnormal returns, which reflect investor optimism regarding the new player's potential impact on the team's success. In contrast, sales and loans of players tend to elicit negative reactions from the market, indicating concerns about possible adverse effects on team performance. These results support the Efficient Market Hypothesis by demonstrating that stock prices quickly adjust to new information such as player transfers. This research adds to the expanding literature at the intersection of sports events and financial markets, providing valuable insights for clubs operating in capital markets and investors aiming to understand the dynamics of football markets. |
| Keywords: | Event Studies; Football Transfers; Abnormal Returns; Stock Market; Efficient Market Hypothesis. |
| JEL: | G14 L83 M41 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ise:remwps:wp03612024 |
| By: | Zilong Li (School of Economics, University College Dublin; Geary Institute for Public Policy, University College Dublin, Ireland); Xidong Guo (Vanke School of Public Health, Tsinghua University, Beijing 100084, China); Zuzanna Studnicka (School of Economics, University College Dublin, Ireland); Jiming Zhu (Vanke School of Public Health, Tsinghua University, Beijing 100084, China) |
| Abstract: | We examine the home advantage in the Chinese Basketball Association during the “neutral venues policy”, a period of approximately 2.5 years when games were relocated to neutral sites due to China’s strict COVID-19 regulations. We observe a reduced home advantage under this policy, providing a natural experiment to analyze the heterogeneous effects of neutral venues. We investigate these effects from two perspectives: (1) the relative strength of the home team and (2) the climate conditions of the home team’s original location. We find that stronger home teams are less affected by playing in neutral venues, suggesting that such teams rely less on the benefits of their home ground. Moreover, teams based in colder regions experience a more pronounced decline in home advantage during winter when they are unable to play on their home courts. |
| Keywords: | Home advantage; COVID-19; Neutral venues; Cold temperature; Team strength |
| JEL: | D91 L83 Q54 Z20 |
| Date: | 2024–12–16 |
| URL: | https://d.repec.org/n?u=RePEc:ucd:wpaper:202408 |
| By: | Martin Dufwenberg (Department of Economics, University of Arizona); Katja Goerlitz (University of Applied Labour Studies); Christina Gravert (Department of Economics, University of Copenhagen) |
| Abstract: | Peer evaluation tournaments are common in academia, the arts, and corporate environments. They make use of the expert knowledge that academics or team members have in assessing their peers performance. However, rampant opportunities for cheating may throw a wrench in the process unless, somehow, players have a preference for honest reporting. Building on Dufwenberg and Dufwenbergs (2018) theory of perceived cheating aversion, we develop a multi-player model in which players balance the utility of winning against the disutility of being identified as a cheater. We derive a set of predictions, and test these in a controlled laboratory experiment. |
| Keywords: | psychological game, cheating, tournaments, laboratory experiment |
| JEL: | C91 |
| Date: | 2024–12–13 |
| URL: | https://d.repec.org/n?u=RePEc:kud:kucebi:2420 |
| By: | Claire Mollier (EconomiX, Paris Nanterre University, France); Aurora García-Gallego (ICAE and Economics Department, Universidad Complutense de Madrid and LEE and Department of Economics, Universitat Jaume I, Castellón, Spain); Tarek Jaber-López (Institute of Public Goods and Policies (IPP), Spanish National Research Council (CSIC), Madrid, Spain); Sarah Zaccagni (Department of Economics and Business Economics, Aarhus University, Denmark.) |
| Abstract: | We investigate how the competition outcome and the gender of the opponent affect the decision to compete again, using a lab experiment. Our experimental design adopts the strategy method to measure individuals’ reactions to winning or losing. Subjects indicate their willingness to compete again based on performance gaps with their opponents. Furthermore, gender is inferred from participant-selected- names, allowing for an exploration of the role played by the opponent’s gender. We find that all subjects are slightly more willing to compete after winning against a female opponent. Also, it is slightly more likely that they accept to re-compete against a male after winning. Males try significantly more to outperform a female after losing, and this is robust when controlling for gender stereotypes and age. |
| Keywords: | competitiveness, gender, feedback, career decisions, lab experiment |
| JEL: | C91 D91 J16 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:jau:wpaper:2024/08 |
| By: | Klinenberg, Danny |
| Abstract: | Why do people join domestic violent extremist organizations? This paper examines an understudied reason: organizational outreach. I study how the inflow of new members to the Oath Keepers, America’s largest paramilitary organization, is affected when the group’s leadership employs three tactics: showcasing their ideological zeal through armed standoffs with the government, membership discounts, and sports sponsorships. Using a variant of the synthetic control method, I find that standoffs increase new memberships by 150 percent, discounts increase new memberships by over 60 percent, and sports sponsorships decrease new memberships. Membership is less responsive in counties with higher income inequality, but is more responsive in politically conservative counties. The findings provide new insights into ways extremist groups attract potential recruits. |
| Keywords: | Social and Behavioral Sciences, Far-right extremism, recruitment, push-pull factors, causal inference |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt2rj4t2rh |