Incentives and Outcomes in a Strategic Setting: The 3-Points-For-A-Win System in Soccer
AbstractWe exploit a major structural change that has occurred in world soccer to study the impact of incentives on outcomes in a strategic setting. A game-theoretic model is developed that captures some essential strategic elements of soccer vis-Ã -vis the number of points awarded to a win. The observable implications of the model are tested using a large dataset that spans 30 years and 35 countries. The empirical results support the theoretical model and show that the 3-point system has led to a statistically significant increase in the expected number of goals and a decrease in the fractions of drawn matches.
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Bibliographic InfoPaper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12942.
Date of creation: 24 Jun 2008
Date of revision:
Publication status: Published in Economic Inquiry, January 2010, vol. 48 no. 1, pp. 65-79
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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
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Web page: http://www.econ.iastate.edu
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Association football; Nash equilibrium; panel data; strategic incentives; supermodularity; tournaments;
Other versions of this item:
- Giancarlo Moschini, 2010. "Incentives And Outcomes In A Strategic Setting: The 3-Points-For-A-Win System In Soccer," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 65-79, 01.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
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