The Utility of Sport and Returns to Ownership
The rate of return to investment in thoroughbred racehorses is widely believed to be negative on average. In a world of fully informed market participants, this implies that ownership of a racehorse is motivated in part by nonfinancial attributes, perhaps a taste for sport. This article presents simple models of the utility derived from sporting competition. The models differ in their implications for the rate of return to racehorse ownership and its variation with the level of talent. Evidence from thoroughbred auctions and racing earnings are used to test between the models.
Volume (Year): 1 (2000)
Issue (Month): 3 (August)
|Contact details of provider:|
When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:1:y:2000:i:3:p:219-235. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications)
If references are entirely missing, you can add them using this form.