Abstract

http://ssrn.com/abstract=276006
 
 

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Favoritism Under Social Pressure


Luis Garicano


University of Chicago - Booth School of Business - Economics; Centre for Economic Policy Research (CEPR)

Ignacio Palacios-Huerta


London School of Economics

Canice Prendergast


University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER)

July 2001

NBER Working Paper No. w8376

Abstract:     
This paper provides empirical evidence of favoritism by agents, where that favoritism is generated by social pressure. To do so, we explore the behavior of professional soccer referees. Referees have discretion over the addition of extra time at the end of a soccer game (called injury time), to compensate for lost time due to unusual stoppages. We test for systematic bias shown by Spanish referees in favor of home teams. We show that referees systematically favor home teams by shortening close games where the home team is ahead, and lengthening close games where the home team is behind. They show no such bias for games that are not close. We further show that when the rewards for winning games increase, referees change their bias accordingly. We also identify that the mechanism through which bias operates is the referees' desire to satisfy the crowd, by documenting how the size and composition of the crowd affect referee favoritism.

Number of Pages in PDF File: 34

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Date posted: July 6, 2001  

Suggested Citation

Garicano, Luis and Palacios-Huerta, Ignacio and Prendergast, Canice, Favoritism Under Social Pressure (July 2001). NBER Working Paper No. w8376. Available at SSRN: http://ssrn.com/abstract=276006

Contact Information

Luis Garicano (Contact Author)
University of Chicago - Booth School of Business - Economics ( email )
Graduate School of Business
1101 East 58th Street
Chicago, IL 60637
United States
773-834-2862 (Phone)
773-702-0458 (Fax)
Centre for Economic Policy Research (CEPR)
77 Bastwick Street
London, EC1V 3PZ
United Kingdom
Ignacio Palacios-Huerta
London School of Economics ( email )
Dept. of Management
Houghton Street
London, WC2A 2AE
United Kingdom
Canice Prendergast
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-702-7309 (Phone)
773-702-0458 (Fax)
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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