We analyze the effect of positive and negative feedback on professional performance. For this, we exploit a unique data source in which quasi-random, naturally occurring variations within subjective ratings serve as positive and negative feedback. Our analysis suggests that receiving positive feedback has a favorable impact on subsequent performance, while negative feedback does not have an effect. These main results are found in two distinct environments and for different cultural backgrounds, experiences, and genders of the feedback recipients. The favorable impact of positive feedback is short-term, repeatable, and stronger for highly relevant tasks.

This paper provides one of the first tests of the within-game uncertainty of outcome hypothesis. We examine the relationship between the demand for nationally televised regular season NBA basketball viewing and outcome uncertainty while the games are being played. We use granular television viewing and scoring data and account for the dynamics of television viewing. We find evidence of modest but statistically significant effects of outcome uncertainty on the size of the TV viewing audience which occur largely at the end of the game, supporting the uncertainty of outcome hypothesis. These effects are subject to diminishing marginal returns. We also find evidence of a sizable independent loss of viewers at halftime and the end of games that is unrelated to outcome uncertainty.

The small but growing body of research on team vs. team competition focuses on predicting the winner based on multilevel factors, including the team's strength and prior relations among team members within a team. Our research demonstrates the significance and power of prior relations among members between competing teams in predicting the outcome of a contest. Leveraging data over 8 seasons of the Indian Premier League (IPL), we demonstrate the effects of competing against former teammates on a team's victory in IPL matches. If two teams, A and B, are competing in a match, and nA players from A are former teammates of players on B and nB players from B are former teammates of players on A, then if team A has smaller values of nA, it will have a competitive advantage over Team B with a higher value of nB. We call the magnitude of the difference of nA and nB the “ecosystem” factor in predicting performance. Using regression and stochastic network models, we find that the ecosystem factor significantly impacts the outcome of a match. Our findings have implications for franchise owners. While recruiting a player, franchise owners should not rely solely on the player's ability but also leverage the rivalry between former teammates.

Sports betting markets can be considered strongly efficient if expected returns on all possible bets on an event are equal. If this form of efficiency holds, then there is a direct mapping from betting odds into probabilities of outcomes of sporting events. We compare two regression-based methods for testing this form of efficiency that have been used in previous research: One that uses normalized probabilities as the explanatory variable for event outcomes and one that uses the inverse of the decimal odds. We show that the normalized probability method produces good tests of the null hypothesis of strong market efficiency but that the inverse odds method does not, with results biased against finding favorite-longshot bias. We illustrate this finding using large datasets of bets and outcomes for tennis and soccer and also with realistic simulations.

We present a game-theoretic model of baseball as a two-by-two normal-form game between pitchers and batters, where batters decide whether to swing or hold, and pitchers choose whether to throw inside or outside the strike zone. We use machine learning to label pitches that have not been swung at. Our approach enables testing of the predictions derived from the Minimax Theorem for both players. The hypotheses of equality of payoffs across actions and the absence of serial correlation hold for the majority of players. Batters exhibit lower swing rates than theoretical predictions, while pitchers tend to throw inside the strike zone more frequently than expected.

We investigate the presence of nationality salary premia in two top European football leagues (the Premier League and Serie A). We uncover a substantial pay premium for South American players (primarily driven by Argentina and Brazil) of between 11 and 15 per cent in magnitude. We investigate possible mechanisms, such as whether these salary effects are driven by new entrants to the league, and whether they are reflected in team attendances and team performance. Fans appear to respond to higher proportions of South American players in England, but not in Italy. We discuss the implications of these results and suggest why potential differences might exist across the leagues.

Does success breed success? Psychological momentum theory suggests that past achievements might influence future performance. However, distinguishing between psychological and strategic momentum — where a player's effort shifts based on relative position — is challenging. In this paper, using a novel dataset from professional Counter-Strike: Global Offensive matches, I focus on technical timeouts. These timeouts don't affect player position but may disrupt psychological momentum. I find that a winning [losing] team with significant momentum sees a 13 [11.7] percentage points increased chance of losing [winning] the following round after calling for such a timeout. This shows that psychological momentum significantly affects performance and that timeouts can reset the momentum.

Economic agents react to incentives, and this holds true for professional football teams as well. Double round-robin and single-match elimination represent two opposite competition regimes, with incentives varying distinctly between them. At the level of individual matches, a single defeat needs not be fatal under a double round-robin regime, unlike in a single-match elimination system. Utilizing data from Dutch professional football from the 2004/05 season to the 2022/23 season, we compare single-match elimination Cup matches with double round-robin league matches, focusing on stadium attendance, match results, and home advantage. Stadium attendance tends to be lower in Cup matches, although the gap narrows in later stages of the Cup tournament, and it eventually disappears. The home advantage is similar in Cup matches and league matches, but when Cup matches extend beyond regular time, the home advantage diminishes. In later stages of the Cup tournament, both during extra time and penalty shootouts, home advantage appears to be virtually absent.

The transfer market for sports players is analyzed using a contest theory approach. A sports team exerts two types of effort in order to attract a player: productive effort, for which the team incurs a cost only if the player signs a contract with them; and persuading effort, for which the team incurs a cost regardless. The findings describe the conditions under which there will be no persuading effort, as well as the impact of persuading effort on productive effort and the contestant's utility.

What constitutes competitive balance is a contentious issue in professional sports. We contribute to this debate with a simple framework encapsulating multiple viewpoints of competitive balance and highlight how this framework suggests that there could be an inherent tradeoff along two common dimensions. Using the framework as a lens for comparing North American professional sports leagues, we then demonstrate how important changes over time in the collective bargaining process have influenced the competitive balance of these leagues in different ways. Finally, we discuss and provide descriptive evidence for the influence of differences in non-gate revenue growth across leagues and how it might have affected their competitive balance in recent years. (JEL L83, D63, C23).