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Favouritism and Financial Incentives: A Natural Experiment

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Author Info

  • NEIL RICKMAN
  • ROBERT WITT

Abstract

Principals who exercise favouritism towards certain agents may harm those who are not so favoured. We address this issue in the context of a natural experiment from English soccer. We study the effects of professional referees on a common measure of referee bias: length of injury time in close matches. We find that referees exercised a degree of favouritism prior to professionalism but not afterwards, having controlled for selection and soccer-wide effects. We also discuss the suitability of the variable that we, and others, use to measure favouritism, noting that alternative interpretations may be possible. Copyright (c) The London School of Economics and Political Science 2007.

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Bibliographic Info

Article provided by London School of Economics and Political Science in its journal Economica.

Volume (Year): 75 (2008)
Issue (Month): 298 (05)
Pages: 296-309

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Handle: RePEc:bla:econom:v:75:y:2008:i:298:p:296-309

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References

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  1. Zantman, Wilfried, 2002. " Constitutional Design and Regional Favoritism," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 4(1), pages 71-93.
  2. Sutter, Matthias & Kocher, Martin G., 2004. "Favoritism of agents - The case of referees' home bias," Munich Reprints in Economics 18180, University of Munich, Department of Economics.
  3. Luis Garicano & Ignacio Palacios-Huerta & Canice Prendergast, 2001. "Favoritism Under Social Pressure," Working Papers 2001-16, Brown University, Department of Economics.
  4. John Knowles & Nicola Persico & Petra Todd, . ""Racial Bias in Motor Vehicle Searches: Theory and Evidence''," CARESS Working Papres 99-06, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences.
  5. Naegelen, Florence & Mougeot, Michel, 1998. "Discriminatory public procurement policy and cost reduction incentives," Journal of Public Economics, Elsevier, vol. 67(3), pages 349-367, March.
  6. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  7. Gray, Alastair & Rickman, Neil & Fenn, Paul, 1999. "Professional Autonomy and the Cost of Legal Aid," Oxford Economic Papers, Oxford University Press, vol. 51(3), pages 545-58, July.
  8. Canice Prendergast & Robert H. Topel, 1993. "Favoritism in Organizations," NBER Working Papers 4427, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Katherine G. Yewell & Steven B. Caudill & Franklin G. Mixon, Jr., 2014. "Referee Bias and Stoppage Time in Major League Soccer: A Partially Adaptive Approach," Econometrics, MDPI, Open Access Journal, vol. 2(1), pages 1-19, February.
  2. Juan Mendoza & Andrés Rosas, 2013. "Referee Bias in Professional Soccer: Evidence from Colombia," VNIVERSITAS ECONÓMICA 011059, UNIVERSIDAD JAVERIANA - BOGOTÁ.
  3. Peter Dawson & Stephen Dobson, 2008. "The Influence of Social Pressure and Nationality on Individual Decisions: Evidence from the Behaviour of Referees," Working Papers 0809, International Association of Sports Economists & North American Association of Sports Economists.
  4. Reilly, Barry & Witt, Robert, 2011. "Disciplinary sanctions in English Premiership Football: Is there a racial dimension?," Labour Economics, Elsevier, vol. 18(3), pages 360-370, June.
  5. Alex Bryson & Babatunde Buraimo & Rob Simmons, 2010. "Do Salaries Improve Worker Performance?," CEP Discussion Papers dp1019, Centre for Economic Performance, LSE.
  6. repec:lan:wpaper:3661 is not listed on IDEAS
  7. repec:lan:wpaper:3946 is not listed on IDEAS
  8. Donna Harris & Benedikt Herrmann & Andreas Kontoleon, 2009. "Two's Company, Three's a Group: The impact of group identity and group size on in-group favouritism," Environmental Economy and Policy Research Working Papers 41.2009, University of Cambridge, Department of Land Economics, revised 2009.
  9. Babatunde Buraimo & David Forrest & Robert Simmons, 2007. "The Twelfth Man? Refereeing Bias in English and German Soccer," Working Papers 0707, International Association of Sports Economists & North American Association of Sports Economists.
  10. Dey, Oindrila & Banerjee, Swapnendu, 2013. "Status, incentives and random favouritism," MPRA Paper 49188, University Library of Munich, Germany.
  11. Andrés J. Picazo-Tadeo & Francisco González-Gómez & Jorge Guardiola, 2011. "The importance of time in referee home bias due to social pressure. Evidence from Spanish football," FEG Working Paper Series 03/11, Faculty of Economics and Business (University of Granada).
  12. Roberto Antonietti, 2008. "Il ruolo economico dell’arbitro di calcio: una rassegna della letteratura e alcune questioni aperte," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 4(3), pages 75-103, Dicembre.
  13. Andrés Picazo-Tadeo & Francisco Gónzalez-Gómez & Jorge Guardiola Wanden-Berghe, 2011. "Referee home bias due to social pressure. Evidence from Spanish football," Working Papers 1119, Department of Applied Economics II, Universidad de Valencia.

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