The Winner's Curse in Sports Economics
Résumé
A sports entity often maximizes its monopoly rent in creating an auction-like situation among competing agents for its exclusive product. The latter overbid up to the most optimistic bidder's price. Here comes the winner's curse whenever the market value of the auctioned object is unknown ex ante. The most optimistic bidder wins the bid and its actual net revenues will be lower than expected. A winner's curse occurs in bids for hosting a mega-sporting event, when several cities compete to host a team franchise, TV channels bid for a league's broadcasting rights, and teams overbid for recruiting a same free agent or superstar player. Keywords
Domaines
Economies et finances
Origine :
Fichiers produits par l'(les) auteur(s)
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