Economic Incentives of the Olympic Games
20 Pages Posted: 13 Sep 2004
Date Written: September 9, 2004
We provide a game-theoretic analysis of countries strategic allocations of resources among different sports and athletes performance at the Olympic Games. Individuals face opportunity costs of spending efforts and countries maximize their expected number of medals. We suggest several proxy variables for country-specific costs and test the predictions of the model using the summer Olympic Games data for 1960-2004.
Keywords: Tournaments, Olympic Games, Strategic Budget Allocation
JEL Classification: C79, C53
Suggested Citation: Suggested Citation