Explaining the Favorite-Longshot Bias: Is it Risk-Love or Misperceptions? The favorite-longshot bias describes the longstanding empirical regularity that betting odds provide biased estimates of the probability of a horse winning – longshots are overbet, while favorites are underbet. Neoclassical explanations of this phenomenon focus on rational gamblers who overbet longshots due to risk-love. ...

Long-Run Labour Market Effects of Individual Sports Activities This microeconometric study analyzes the effects of individual leisure sports participation on long-term labour market variables, on socio-demographic as well as on health and subjective well-being indicators for West Germany based on individual data from the German SocioEconomic Panel study (GSOEP) 1984 to 2006. Econometric problem...

Many tournaments are plagued by sabotage among competitors. Typically, sabotage is welfare-reducing, but from an individual’s perspective an attractive alternative to exerting positive effort. Yet, given its illegal and often immoral nature, sabotage is typically hidden, making it difficult to assess its extent and its victims. Therefore, we use data from Judo World Championships, where a rule ...

This study estimates the impact of London’s successful 2012 summer Olympics bid on property prices. Using a self-constructed dataset of a sample of property transactions, we estimate a semilogarithmic hedonic model for Greater London. Applying a difference-in-differences estimator, we find that properties in the host boroughs are sold between 2.1 and 3.3 percent higher, depending on the definit...

Although a considerable literature exists on determinants of managerial compensation, much of it focussing on the role of incentives, there is much less known about the im-pact of managerial remuneration and quality upon attainment of organizational goals. In this paper we use a novel panel data set from the German premier soccer league (Bundesliga) as a case to show how variations in manageria...

Previous research on point spread betting assumed that bookmakers attract an equal volume of bets on either side of games in order to maximize profits. This paper examines the viability of this assumption from a theoretical and empirical perspective. The model of bookmaker behavior developed predicts that expected returns are not necessarily maximized when the volume of bets on each side of a g...

We use Hurricane Katrina’s damage to the Mississippi coast in 2005 as a natural experiment to study business survival in the aftermath of a cost shock. We find storm damage had a “cleansing” effect on businesses: damaged establishments that returned to operation were more resilient than those that had never been damaged. This effect is particularly strong for establishments belonging to younger...

Le développement de projets culturels territoire apparaît comme un élément différenciation et d’accroissement l’attractivité (Plaza, 2000). Cependant, les conditions réussite ces semblent être différentes selon qu’il s’agisse territoires urbains ou ruraux, or derniers restent encore peu étudiés (Delfosse, 2015 ;...

The practice of executive stock option repricing is examined using a sample of firms in the gaming industry during 1994-98. The practice of repricing executive stock options is often criticized, however this paper recognizes that there may be conditions when such recontracting may be viewed as beneficial to shareholders. Specifically, given that options provide both incentives to increase risk ...

This paper identifies matches on the male and female professional tennis tours in which one player faces a high payoff from being “on the bubble” of direct entry into one of the lucrative Grand Slam tournaments, while their opposition does not. Analyzing over 378,000 matches provides strong evidence for corrupt behavior on the men’s tour, as bubble players are substantially more likely to beat ...