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The Color of Medals

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  • Moonjoong Tcha

    (University of Western Australia)

Abstract

This article explores a country’s utility maximization behavior for the Olympic Games when uncertainty exists in medal production. An application of the theoretical model developed shows that, when the Eastern bloc pays relatively lower (higher) costs to win medals, as the overall welfare level increases, the related risk premium decreases, which, in turn, increases (decreases) the differences between the Eastern and Western bloc countries’ performances in the Olympic Games. When the Eastern bloc pays relatively lower (higher) costs to win medals, the difference in the performance is also supposed to increase (decrease), as the uncertainty in obtaining medals decreases and the cost of medal production in the Western bloc increases. As a result, this study predicts that the out-performance of the former socialist countries in the Olympic Games would have dissipated, even without the recent political and economic collapse of those countries, unless they had accelerated their distorted sport policies.

Suggested Citation

  • Moonjoong Tcha, 2004. "The Color of Medals," Journal of Sports Economics, , vol. 5(4), pages 311-328, November.
    • Handle: RePEc:sae:jospec:v:5:y:2004:i:4:p:311-328
    DOI: 10.1177/1527002503257212
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    References listed on IDEAS

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    1. Andrew B. Bernard & Meghan R. Busse, 2000. "Who Wins The Olympic Games: Economic Development and Medal Totals," Yale School of Management Working Papers ysm160, Yale School of Management.
    2. Hayne E. Leland, 1968. "Saving and Uncertainty: The Precautionary Demand for Saving," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 82(3), pages 465-473.
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    Citations

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    Cited by:

    1. Vagenas, George & Vlachokyriakou, Eleni, 2012. "Olympic medals and demo-economic factors: Novel predictors, the ex-host effect, the exact role of team size, and the “population-GDP” model revisited," Sport Management Review, Elsevier, vol. 15(2), pages 211-217.
    2. Franklin G. Mixon Jr. & Richard J. Cebula, 2022. "Property Rights Freedom and Innovation: Eponymous Skills in Women's Gymnastics," Journal of Sports Economics, , vol. 23(4), pages 407-430, May.
    3. David Forrest & Adams Ceballos & Ramón Flores & Ian G. McHale & Ismael Sanz & J.D. Tena, 2012. "Explaining and Forecasting National Team Medals Totals at the Summer Olympic Games," Chapters, in: Wolfgang Maennig & Andrew Zimbalist (ed.), International Handbook on the Economics of Mega Sporting Events, chapter 13, Edward Elgar Publishing.
    4. Caroline Buts & Cind Du Bois & Bruno Heyndels & Marc Jegers, 2013. "Socioeconomic Determinants of Success at the Summer Paralympics," Journal of Sports Economics, , vol. 14(2), pages 133-147, April.
    5. Leeds Eva Marikova & Leeds Michael A., 2012. "Gold, Silver, and Bronze: Determining National Success in Men’s and Women’s Summer Olympic Events," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 232(3), pages 279-292, June.
    6. Pravin K. Trivedi & David M. Zimmer, 2014. "Success at the Summer Olympics: How Much Do Economic Factors Explain?," Econometrics, MDPI, vol. 2(4), pages 1-34, December.

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