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The Welfare Optimal Distribution of Olympic Success Considered as a Public Good

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Author Info
Loek Groot ()

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Abstract

This study considers the performance of countries at the Olympic Games as a public good and investigates different welfare optimal distributions of Olympic success. First, it is argued that at the national level Olympic success, measured as the number of gold medals won, meets the two key conditions of a public good, nonrivalry and non-excludability. Second, it is demonstrated that standard income inequality measures as the Lorenz curve and Atkinson’s measure can successfully be applied to the distribution of Olympic success. Four different distributions are considered: the actual distribution, the distribution according to population shares, the distribution under constant and declining marginal utility of medals and the one also taking production costs and declining marginal utility of per capita income into account. For the latter two, the rules for the welfare optimal distributions are stated, viz. equality of the marginal contributions to welfare and the Samuelson condition. At the end, a device is proposed to make the distribution of Olympic success more equitable.

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Publisher Info
Paper provided by Utrecht School of Economics in its series Working Papers with number 07-13.

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Length: 30 pages
Date of creation: Mar 2007
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Handle: RePEc:use:tkiwps:0713

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Related research
Keywords: Olympic Games Public Goods Externalities Social Welfare

Find related papers by JEL classification:
D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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  1. Andrew B. Bernard & Meghan R. Busse, 2004. "Who Wins the Olympic Games: Economic Resources and Medal Totals," The Review of Economics and Statistics, MIT Press, vol. 86(1), pages 413-417, December. [Downloadable!] (restricted)
  2. Hoffman, Robert & Ging, Lee Chew & Ramasamy, Bala, 2002. "Public Policy and Olympic Success," Applied Economics Letters, Taylor and Francis Journals, vol. 9(8), pages 545-48, June. [Downloadable!] (restricted)
  3. Imad A. Moosa & Lee Smith, 2004. "Economic Development Indicators as Determinants of Medal Winning at the Sydney Olympics: An Extreme Bounds Analysis," Australian Economic Papers, Blackwell Publishing, vol. 43(3), pages 288-301, 09. [Downloadable!] (restricted)
  4. Daniel K. N. Johnson & Ayfer Ali, 2004. "A Tale of Two Seasons: Participation and Medal Counts at the Summer and Winter Olympic Games," Social Science Quarterly, The Southwestern Social Science Association, vol. 85(4), pages 974-993. [Downloadable!] (restricted)
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This page was last updated on 2008-8-18.


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