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The Basic Economics of Match Fixing in Sport Tournaments

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  • Raul Caruso

    ()
    (Institute of Economic Policy, Università Cattolica del Sacro Cuore di Milano, 20123 Milano, Italy)

Abstract

Match-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 Info

Article 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)
Pages: 355-377

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Handle: RePEc:eap:articl:v39:y:2009:i:3:p:355-377

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Related research

Keywords: Football; Sport Contest; Contest Management; Match-Fixing; Tacit Collusion; Asymmetry in evaluation; Concession; FIFA; UEFA; World Cup; Champions League;

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References

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  1. Benno Torgler, 2006. "Historical Excellence' in Soccer World Cup Tournaments: Empirical Evidence with Data from 1930 to 2002," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, Centro di diritto e business dello Sport, vol. 2(1), pages 101-117, Aprile.
  2. Benny Moldovanu & Aner Sela, 2001. "The Optimal Allocation of Prizes in Contests," American Economic Review, American Economic Association, vol. 91(3), pages 542-558, June.
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  13. Caruso, Raul, 2007. "Conflict and Conflict Managment with Asymmetric Stakes (The Bad-Cop and the Good Cop part II)," MPRA Paper 1438, University Library of Munich, Germany.
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Citations

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Cited by:
  1. Caruso, Raul & Di Domizio, Marco, 2013. "International hostility and aggressiveness on the soccer pitch Evidence from European Championships and World Cups for the period 2000-2012," MPRA Paper 50099, University Library of Munich, Germany.
  2. Helmut Dietl & Christian Weingärtner, 2012. "Betting scandals and attenuated property rights - How betting related match fixing can be prevented in future," Working Papers 0154, University of Zurich, Institute for Strategy and Business Economics (ISU).
  3. Alessandro Baroncelli & Raul Caruso, 2011. "The Organization And Economics Of Italian Serie A: A Brief Overall View," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, Centro di diritto e business dello Sport, vol. 7(2), pages 67-85, September.
  4. Marco Di Domizio & Mattia Palombini, 2011. "Competitività orizzontale e verticale nel ciclismo professionistico: alcune riflessioni sul circuito pro tour," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, Centro di diritto e business dello Sport, vol. 6(3), pages 35-54, Febbraio.
  5. Caruso Raul & Di Domizio Marco, 2013. "Hooliganism and demand for football in Italy: Attendance and counter-violence policy evaluation," wp.comunite 0101, Department of Communication, University of Teramo.

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