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Match-fixing under competitive odds

Author

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  • Bag, Parimal Kanti
  • Saha, Bibhas

Abstract

Two bookmakers compete in Bertrand fashion while setting odds on the outcomes of a sporting contest where an influential punter (or betting syndicate) may bribe some player(s) to fix the contest. Zero profit and bribe prevention may not always hold together. When the influential punter is quite powerful, the bookies may coordinate on prices and earn positive profits for fear of letting the ‘lemons’ (i.e., the influential punter) in. On the other hand, sometimes the bookies make zero profits but also admit match-fixing. When match-fixing occurs, it often involves bribery of only the strong team. The theoretical analysis is intended to address the problem of growing incidence of betting related corruption in world sports including cricket, horse races, tennis, soccer, basketball, wrestling, snooker, etc.

Suggested Citation

  • Bag, Parimal Kanti & Saha, Bibhas, 2011. "Match-fixing under competitive odds," Games and Economic Behavior, Elsevier, vol. 73(2), pages 318-344.
  • Handle: RePEc:eee:gamebe:v:73:y:2011:i:2:p:318-344
    DOI: 10.1016/j.geb.2011.03.001
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    References listed on IDEAS

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    Cited by:

    1. Alasdair Brown & Fuyu Yang, 2014. "Have Betting Exchanges Corrupted Horse Racing?," University of East Anglia Applied and Financial Economics Working Paper Series 066, School of Economics, University of East Anglia, Norwich, UK..
    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. repec:spr:series:v:8:y:2017:i:2:d:10.1007_s13209-017-0156-y is not listed on IDEAS
    4. Juan Vidal-Puga, 2017. "On the effect of taxation in the online sports betting market," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(2), pages 145-175, June.

    More about this item

    Keywords

    Sports betting; Bookie; Punters; Corruption; Match-fixing; Lemons problem;

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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