Scandinavian Working Papers in Economics

SSE/EFI Working Paper Series in Economics and Finance,
Stockholm School of Economics

No 746: Accuracy in Contests: Players' Perspective

Mustafa YILDIRIM ()
Additional contact information
Mustafa YILDIRIM: Dept. of Economic Statistics, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden

Abstract: We propose a political theory for the slow adoption of technology in sports and other contests. We investigate players’preferences for new technology that improves contest accuracy. Modeling accuracy as the elasticity of "production" in a standard Tullock contest, we show that players may be against higher accuracy if heterogeneity among them is:(1) sufficiently low; (2) moderate but the initial accuracy is low; or (3) high but the initial accuracy is high. We apply our results to the recent adoption of goal-line technology by major European soccer leagues.

Keywords: contest accuracy; politics; slow technology adoption; goal-line technology

JEL-codes: C72; D44; D72

30 pages, First version: September 23, 2013. Revised: September 24, 2013.

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