Title

Incentives and Outcomes in a Strategic Setting: The 3-Points-for-a-Win System in Soccer

Campus Units

Economics

Document Type

Article

Publication Version

Submitted Manuscript

Publication Date

1-2010

Journal or Book Title

Economic Inquiry

Volume

48

Issue

1

First Page or Article ID Number

65

Last Page

79

DOI

10.1111/j.1465-7295.2008.00177.x

Abstract

I exploit a major structural change that has occurred in world soccer to study the impact of incentives on outcomes in a strategic setting. A game-theoretic model is developed that captures some essential strategic elements of soccer vis-à-vis the number of points awarded to a win. The observable implications of the model are tested using a large data set that spans 30 years and 35 countries. The empirical results support the theoretical model and show that the 3-point system has led to a statistically significant increase in the expected number of goals and a decrease in the fractions of drawn matches

JEL Classification

C72, L83, C23

Comments

This is a working paper of an article from Economic Inquiry 48 (2010): 65, doi: 10.1111/j.1465-7295.2008.00177.x.