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Upsets

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  • Evan Osborne

Abstract

The article models the upset—a low-probability outcome of a periodic competition. It is assumed that the upset is an independent component of consumer preferences, whose marginal willingness to pay grows with time. The decision rule for a league on upset timing is a competitive-balance problem but is unlike standard models of competitive balance. Upset timing is likened partially to the optimal redemption time of a growing asset, and implications for competitive balance in this environment are derived.

Suggested Citation

  • Evan Osborne, 2012. "Upsets," Journal of Sports Economics, , vol. 13(3), pages 314-320, June.
    • Handle: RePEc:sae:jospec:v:13:y:2012:i:3:p:314-320
    DOI: 10.1177/1527002511416562
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    References listed on IDEAS

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    Cited by:

    1. Humphreys, Brad R & Pérez, Levi, 2019. "Loss aversion, upset preference, and sports television viewing audience size," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 61-67.

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