Essays on Behavioural Economics of Sport

Abstract

This thesis comprises three independent studies that explore various aspects of human behaviour, using data from sports. The studies are linked by their focus on how social, cultural, and individual factors influence the behaviour and decision-making process of individuals.

The first chapter introduces a novel variable, ball-in-play time, to assess potential referee bias in football, particularly regarding the decision on additional time. By comparing matches played behind closed doors during the Covid-19 pandemic with those played in front of fans, the study finds that referees exhibit a bias towards home teams, but only in the presence of fans. This suggests that social pressure from fans significantly influences the decisions of referees. The study also examines referee behaviour when there is a strength difference between the competing teams to investigate `big team' or `favourite team' bias.

The second chapter investigates the impact of formally assigned leaders (team captains) and informal leaders (all-stars) on their teammates' productivity in basketball. Using in-game injuries as random shocks, the study employs a novel staggered difference-in-differences estimation to examine peer effects in high-stakes team environments. The key finding is that only players who are both formal and informal leaders have positive effects on their teammates' performance. These findings could extend to team management practices across various industries.

The third chapter explores the relationship between the patience levels of countries and the tenure time of managers, using data from football. By examining the tenure of football managers across different countries, the study offers insights into employment practices in sports and provides a broader understanding of how cultural and socioeconomic factors shape employment practices in various sectors. The analysis shows a positive effect of a country's patience level on the tenure duration of football managers, which is confirmed through instrumental variables and survival analysis.

Together, these studies contribute to our understanding of how social pressure, leadership, and cultural factors influence decision-making in sports, with potential implications for other sectors.