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Favoritism of agents - The case of referees' home bias

Author

Listed:
  • Sutter, Matthias
  • Kocher, Martin G.

Abstract

We study the behavior of football (soccer) referees in the German Bundesliga. Referees are requested to act as impartial agents. However, they may allocate benefits and rewards in a biased way. Agency theory has long neglected this possible form of malfeasance of economic agents, but has rather concentrated on agents exerting suboptimal effort levels. Favoritism or biased behavior of referees can be investigated by examining their decisions on awarding penalties or extra time at the end of a football match. We can confirm a systematic home bias of referees.

Suggested Citation

  • Sutter, Matthias & Kocher, Martin G., 2004. "Favoritism of agents - The case of referees' home bias," Munich Reprints in Economics 18180, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:18180
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    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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