Incentives and Outcomes in a Strategic Setting: The 3-Points-For-A-Win System in Soccer
We exploit a major structural change that has occurred in world soccer to study the impact of incentives on outcomes in a strategic setting. A game-theoretic model is developed that captures some essential strategic elements of soccer vis-Ã -vis the number of points awarded to a win. The observable implications of the model are tested using a large dataset that spans 30 years and 35 countries. The empirical results support the theoretical model and show that the 3-point system has led to a statistically significant increase in the expected number of goals and a decrease in the fractions of drawn matches.
|Date of creation:||24 Jun 2008|
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|Publication status:||Published in Economic Inquiry, January 2010, vol. 48 no. 1, pp. 65-79|
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