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Favoritism Under Social Pressure

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Author Info
Luis Garicano (Graduate School of Business, University of Chicago, and CEPR)
Ignacio Palacios-Huerta (Department of Economics, Brown University)
Canice Prendergast (Graduate School of Business, University of Chicago, and NBER)

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Abstract

This paper is concerned with the effect of nonmonetary incentives on behavior, in particular with the study of social pressure as a determinant of corruption. We offer empirical evidence that shows how professional soccer referees favor home teams in order to satisfy the crowds in the stadium. Referees have discretion over the addition of extra time at the end of a soccer game to compensate for lost time due to unusual stoppages. We find that referees systematically favor home teams by shortening close games where the home team is ahead, and lengthening close games where the home team is behind. They show no such bias for games that are not close. We further find that when the rewards for winning games increase, referees change their bias accordingly. Lastly, we identify that the mechanism through which bias operates is to satisfy the crowd, by documenting how the size and composition of the crowd affect referee favoritism. Copyright (c) 2005 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdfplus/10.1162/0034653053970267
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Publisher Info
Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 87 (2005)
Issue (Month): 2 (05)
Pages: 208-216
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Handle: RePEc:tpr:restat:v:87:y:2005:i:2:p:208-216

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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
  1. 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. [Downloadable!]
  2. Christopher A. Parsons & Johan Sulaeman & Michael C. Yates & Daniel S. Hamermesh, 2007. "Strike Three: Umpires' Demand for Discrimination," NBER Working Papers 13665, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Per Pettersson-Lidbom & Mikael Priks, 2007. "Behavior under Social Pressure: Empty Italian Stadiums and Referee Bias," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
  4. Julio del Corral & Carlos Pestana Barros & Juan Prieto-Rodriguez, 2007. "The Determinants of Soccer Player Substitutions: a Survival Analysis of the Spanish Soccer League," Working Papers 2007/04, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  5. Matthias Sutter & Martin G. Kocher, . "Favoritism of agents – The case of referees’ home bias," Papers on Strategic Interaction 2002-28, Max Planck Institute of Economics, Strategic Interaction Group. [Downloadable!]
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  6. David E. Kalist & Stephen J. Spurr, 2006. "Baseball Errors," Journal of Quantitative Analysis in Sports, Berkeley Electronic Press, vol. 2(4). [Downloadable!]
  7. Rickman, Neil & Witt, Robert, 2005. "Favouritism and Financial Incentives: A Natural Experiment," CEPR Discussion Papers 4968, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  8. 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. [Downloadable!]
  9. Lee, Jungmin, 2004. "Outlier Aversion in Evaluating Performance: Evidence from Figure Skating," IZA Discussion Papers 1257, Institute for the Study of Labor (IZA). [Downloadable!]
  10. Dohmen, Thomas J., 2003. "In Support of the Supporters? Do Social Forces Shape Decisions of the Impartial?," IZA Discussion Papers 755, Institute for the Study of Labor (IZA). [Downloadable!]
  11. V. Bhaskar, 2004. "Rational Adversaries? Evidence from Randomized Trials in the Game of Cricket," Economics Discussion Papers 578, University of Essex, Department of Economics. [Downloadable!]
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  12. Marcoul, Philippe & Lawrence, John & Hueth, Brent, 2006. "Grader Bias In Cattle Markets? Evidence From Iowa," 2006 Annual meeting, July 23-26, Long Beach, CA 21123, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  13. 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. [Downloadable!]
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  14. Stefano DellaVigna & John A. List & Ulrike Malmendier, 2009. "Testing for Altruism and Social Pressure in Charitable Giving," NBER Working Papers 15629, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Marco Caliendo & Dubravko Radic, 2006. "Ten Do It Better, Do They?: An Empirical Analysis of an Old Football Myth," Discussion Papers of DIW Berlin 592, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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  16. Illoong Kwon, 2006. "Endogenous Favoritism in Organizations," The B.E. Journal of Theoretical Economics, Berkeley Electronic Press, vol. 0(1). [Downloadable!]
  17. Thomas J. Dohmen, 2005. "Social Pressure Influences Decisions of Individuals: Evidence from the Behavior of Football Referees," IZA Discussion Papers 1595, Institute for the Study of Labor (IZA). [Downloadable!]
  18. Papahristodoulou, Christos, 2007. "An analysis of Champions League match statistics," MPRA Paper 3605, University Library of Munich, Germany. [Downloadable!]
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