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Globalization and the Concentration of Talent

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  • Schetter, Ulrich
  • Tejada, Oriol

Abstract

We analyze the allocation of talent across teams in large matching markets with competition for rank. We show that under general conditions globalization in the form of a convex transformation of payoffs promotes the concentration of talent, i.e. it makes positive assortative matching more likely and negative assortative matching less likely. This is in line with recent trends in European football (soccer) leagues.

Suggested Citation

  • Schetter, Ulrich & Tejada, Oriol, 2018. "Globalization and the Concentration of Talent," VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy 181562, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc18:181562
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    More about this item

    Keywords

    globalization; inequality; matching; rank competition; strategic interaction;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D3 - Microeconomics - - Distribution
    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General
    • Z2 - Other Special Topics - - Sports Economics

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