Behavior and Incentives in Economics: the Case of Soccer
Universidad Autónoma de Barcelona
Area of Study
Taught In English
Recommended U.S. Semester Credits3
Recommended U.S. Quarter Units4
Hours & Credits
INTRODUCTION TO THE COURSE:
This course takes soccer as an illustration of theories and empirical evidence related to economic incentives and behaviour. Soccer is widely followed and generates a great amount of information. This knowledge is used in a systematic way to explore the validity of economic theories and to empirically test predictions generated by these theories.
Basic knowledge of Economics
1. Demand and Supply in the Soccer Market
- Demand: preferences, elasticity, addiction.
- Social preferences.
- The two roles of preferences: explanation for individual decisions and metric of welfare.
- Costs and Performance: the economics of stars and outliers. The role of talent.
- The soccer industry: players, fans and media.
2. Markets and Organizations in Soccer
- Competition and anti-trust in soccer.
- Competitive balance in soccer.
- Home-field advantage.
- Institutions and regulations that internalize externalities: leagues and federations.
- Salary caps and revenue sharing rules.
3. Cognitive Power in Soccer
- Uncertainty: predictions and ex-post rationalization.
- Believes and judgement in the soccer industry.
- Share price movements and betting.
- Game theory in soccer: simultaneous and sequential games.
- Rationality: shooting penalties, mixed strategies and behavioral economics.
4. Individuals and groups in Soccer
- Rules and referee behaviour: creating, enforcing and influencing the rules.
- Corruption in soccer.
- Team production and incentives for individuals and teams.
- The role of the manager. Efficiency measurement in soccer.
- Tactics: evolutionary economics.
5. Efficiency in Soccer
- The costs and benefits of organizing big sports events such as Soccer World Cups.
- Governance of for-profit and non-profit soccer clubs.
- The Player Transfer Market: analogy to takeovers and auctions.
- Is contemporary soccer sustainable?
- Determinants of national success in soccer. Is it a coincidence that Spain excels in soccer when its economy is in worst shape?