Air pollution kills competition: Evidence from eSports

Jiawei Mo, Zenan Wu and Ye Yuan

Journal of Environmental Economics and Management, 2023, vol. 122, issue C

Abstract: This article investigates how environmental adversity affects competitive performance in cognitive-intensive settings. Using a comprehensive dataset of professional eSports tournaments and match-hour variation of fine particulate matters, we find robust evidence that pollution kills competition. Specifically, higher air pollution levels diminish the performance and winning odds of the weaker team in a matchup while boosting that of the stronger team, widening the gap between them. We document two operating channels: (i) pollution leads to heterogeneous performance-reducing effects contingent on a team’s relative strength against their opponent, rather than its absolute competitiveness; and (ii) a weaker team adjusts their strategic decision-making differently in a polluted environment compared to their stronger counterparts. Our findings elucidate the distributional impact of environmental adversity and underscore its influence on strategic decision-making.

Keywords: Air pollution; Competition; Strategic interaction (search for similar items in EconPapers)
JEL-codes: C72 Q51 Q53 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeeman:v:122:y:2023:i:c:s0095069623001043

DOI: 10.1016/j.jeem.2023.102886

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