EconPapers    
Economics at your fingertips  
 

The winner's curse: why is the cost of sports mega-events so often underestimated?

Wladimir Andreff ()
Additional contact information
Wladimir Andreff: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: Auction theory, when the bidders do not know the value of what is auctionned, is used to explain how the Olympic Games are allocated to competing bidding cities. It is a centralized allocation process with asymmetric information which usually comes out with a winner's curse. Various indicators of the latter are proposed and exemplified, the major one being the systematic ex ante underestimation of the Olympics costs.

Keywords: auctions; bids; winner's curse; asymmetric information; cost underestimation; mega sporting events; Olympics (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-cta, nep-ppm, nep-spo and nep-tur
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00703466
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in Wolfgang Maennig et Andrew Zimbalist. International Handbook on the Economics of Mega Sporting Events, Edward Elgar, pp.37-69, 2012

Downloads: (external link)
https://shs.hal.science/halshs-00703466/document (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-00703466

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-19
Handle: RePEc:hal:cesptp:halshs-00703466