EconPapers    
Economics at your fingertips  
 

The wisdom of crowds and transfer market values

Dennis Coates and Petr Parshakov

European Journal of Operational Research, 2022, vol. 301, issue 2, 523-534

Abstract: Crowd-sourcing of information has become popular in the years since James Surowiecki published The Wisdom of Crowds: why the many are smarter than the few and how collective wisdom shapes business, economies, societies, and nations. In sports, crowd-sourced estimates of players’ values and abilities are common, particularly in football where salary information is generally unavailable. The analysis here first considers the characteristics of a good crowd-sourced value then turns to an empirical analysis which applies those characteristics and their implications to assess the quality of the commonly used crowd-sourced values from Transfermarkt. Our empirical results show systematic influences from some obvious factors indicating that the crowd-sourced transfer fees are biased as predictors of the true market determined fees. The findings are useful because they address the question of whether these values can reasonably be used as proxies for unknown salary in academic research. Additionally, because Transfermarkt values are often used in negotiations between clubs and players, it is useful to both parties to know the accuracy and the bias of the crowd-sourced values.

Keywords: Forecasting; Decision support; Wisdom of crowds; Football; Transfermarkt; FIFA video game (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S037722172100895X
Full text for ScienceDirect subscribers only

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:eee:ejores:v:301:y:2022:i:2:p:523-534

DOI: 10.1016/j.ejor.2021.10.046

Access Statistics for this article

European Journal of Operational Research is currently edited by Roman Slowinski, Jesus Artalejo, Jean-Charles. Billaut, Robert Dyson and Lorenzo Peccati

More articles in European Journal of Operational Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2025-03-23
Handle: RePEc:eee:ejores:v:301:y:2022:i:2:p:523-534