The Basic Economics of Match Fixing in Sport Tournaments
AbstractMatch-fixing is a recurring phenomenon of sport contests. This paper presents a simple formal model in order to explain them. The intuition behind is that an asymmetry in the evaluation of the stake is the key factor leading to match-fixing or to tacit collusion. In particular, it will be demonstrated that an asymmetry in the evaluation of the stake can lead to a concession from one agent to the other and then to a match-fixing. It is also demonstrated that when the asymmetry in the evaluation is extremely large there is room for tacit collusion. Eventually the intuitions and results of the model will be applied to make a comparison between the FIFA World Cup and the UEFA Champions League tournaments.
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Bibliographic InfoArticle provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).
Volume (Year): 39 (2009)
Issue (Month): 3 (December)
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Web page: http://www.journals.elsevier.com/economic-analysis-and-policy/
More information through EDIRC
Football; Sport Contest; Contest Management; Match-Fixing; Tacit Collusion; Asymmetry in evaluation; Concession; FIFA; UEFA; World Cup; Champions League;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
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