Does information processing affect individual risk-taking behaviour? This paper provides evidence that professional athletes suffer from a left-digit bias when dealing with signals about differences in performance. Using data from the highly competitive field of World Cup alpine skiing for the period of 1992–2014, we show that athletes misinterpret actual differences in race times by focusing o...

We analyze point spread changes and betting volume for NCAA Division IA men’s basketball games using survival analysis techniques. Estimates based on point spread changes from 2,548 games at the Hilton sports book and 1,681 games at the Mirage sports book in the 2007 season indicate that observed changes in point spreads are not related to imbalances in bet volumes. Sports books do not appear t...

We investigate the relationship between participation in physical activity and self reported happiness in the United States. IV estimates based on data from the Behavioral Risk Factor Surveillance System between 2005 and 2009 and County Business Patterns indicate that individuals living in a county with greater access to sports facilities are more likely to participate in physical activity and ...

In recent years there has been some dispute over the appropriate way to model decisionmaking in professional sports leagues. In particular, Szymanski and Kesenne (2004), argue that formulating the decision-making problem as a noncooperative game leads to radically different conclusions about the nature of competition in sports leagues. This paper describes a simulation model that van be used in...

We investigate temporal decisions to participate in exercise in a dynamic model featuring present bias and habit formation. The model highlights naivete about present bias and projection bias about habit formation/decay and implies that promoting participation in physical activity must both encourage the inactive to start and discourage the active from quitting as behavioral biases apply to bot...

Professional sports franchises have used the lure of economic riches as an incentive for cities to construct new stadiums and arenas at considerable public expense. An analysis of taxable sales in Florida cities demonstrates that none of the 6 new franchises or 8 new stadiums and arenas in the state since 1980 have resulted in a statistically significant increase in taxable sales in the host me...

We show that professional soccer players exhibit reference-dependent behavior during matches. Controlling for the state of the match and for unobserved heterogeneity, we show on a minute-by-minute basis that a player breaches the rules of the game, measured by the referee’s assignment of cards, with a significantly higher probability if his team is behind the expected match outcome, measured by...

This paper reviews the empirical literature assessing the effects of subsidies for professional sports franchises and facilities. The evidence reveals a great deal of consistency among economists doing research in this area. That evidence is that sports subsidies cannot be justified on the grounds of local economic development, income growth or job creation, those arguments most frequently used...

Major League Baseball teams have used the lure of economic riches as an incentive for cities to construct new stadiums at considerable public expense. Estimates of the economic impact of a MLB on host communities have typically been in the vicinity of $300 million. Our analysis suggest these numbers are wildly inflated. Using the baseball strikes of 1981, 1994, and 1995 as test cases, we find t...

In this paper we analyze a time series measuring the monthly flow of US tourists to Israel over the period 1997-2006. We pay particular attention to the response of tourists to variations in the intensity the Israeli-Palestinian conflict, drawing a distinction between actual conflict intensity and the intensity with which the conflict is reported in the US television media. We find that differe...