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The bidding paradox: why rational politicians still want to bid for mega sports events

Author

Listed:
  • M. de Nooij
  • M.R. van den Berg

Abstract

This paper discusses reasons why politicians still favor hosting mega events despite the discouraging evidence regarding their financial benefits: (1) early political enthusiasm, (2) tying side-projects to the bid to raise political support, (3) biased reading of history, (4) the winners curse, (5) redistribution and lobbying, (6) a media bias in favor of hosting and (7) boosting happiness and pride of residents. Bringing happiness to the people might be a valid reason for hosting a mega event, however, economists are yet insufficiently capable of capturing this effect. Moreover, alternative explanations for political support cannot be deemed invalid ex ante.

Suggested Citation

  • M. de Nooij & M.R. van den Berg, 2013. "The bidding paradox: why rational politicians still want to bid for mega sports events," Working Papers 13-09, Utrecht School of Economics.
    • Handle: RePEc:use:tkiwps:1309
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. What are the arguments for hosting sports mega-events?
      by Economic Logician in Economic Logic on 2013-10-10 19:46:00

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    Cited by:

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    2. Willem I. J. de Boer & Ruud H. Koning & Jochen O. Mierau, 2019. "Ex Ante and Ex Post Willingness to Pay for Hosting a Large International Sport Event," Journal of Sports Economics, , vol. 20(2), pages 159-176, February.

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    Keywords

    Bidding; mega sport events; Olympic games; lobbying; happiness;
    All these keywords.

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