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Quantifying incentive (in)compatibility: A case study from sports

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  • Csató, László

Abstract

For every sports tournament, it is an important requirement to provide contestants with the appropriate incentives to perform. However, incentive compatibility is usually considered an all or nothing (binary) concept in the academic literature, that is, the rules are proved to be either strategy-proof or vulnerable to manipulation. Our paper aims to present a method for quantifying the violation of this theoretical property through the example of the European Qualifiers for the 2022 FIFA World Cup. Even though that competition is known to be incentive incompatible since lower-ranked Nations League group winners are interested in the success of their higher-ranked peers, the extent of the problem has remained unexplored until now. Computer simulations reveal that the threat of tanking can be substantially mitigated by adding a carefully chosen set of draw restrictions, which offers a justifiable and transparent solution to improve fairness. Sports governing bodies are encouraged to take our findings into account.

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  • Csató, László, 2022. "Quantifying incentive (in)compatibility: A case study from sports," European Journal of Operational Research, Elsevier, vol. 302(2), pages 717-726.
    • Handle: RePEc:eee:ejores:v:302:y:2022:i:2:p:717-726
    DOI: 10.1016/j.ejor.2022.01.042
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    Cited by:

    1. Ritxar Arlegi & Dinko Dimitrov, 2023. "League competitions and fairness," Journal of Combinatorial Optimization, Springer, vol. 45(4), pages 1-18, May.
    2. Gustavo Bergantiños & Juan D. Moreno-Ternero, 2023. "Broadcasting revenue sharing after cancelling sports competitions," Annals of Operations Research, Springer, vol. 328(2), pages 1213-1238, September.
    3. Csató László, 2022. "The effects of draw restrictions on knockout tournaments," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 18(4), pages 227-239, December.
    4. Guajardo, Mario & Krumer, Alex, 2023. "Format and schedule proposals for a FIFA World Cup with 12 four-team groups," Discussion Papers 2023/2, Norwegian School of Economics, Department of Business and Management Science.
    5. Lapré Michael A. & Palazzolo Elizabeth M., 2023. "The evolution of seeding systems and the impact of imbalanced groups in FIFA Men’s World Cup tournaments 1954–2022," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 19(4), pages 317-332, December.
    6. Csató, László, 2023. "How to avoid uncompetitive games? The importance of tie-breaking rules," European Journal of Operational Research, Elsevier, vol. 307(3), pages 1260-1269.
    7. László Csató, 2022. "How to design a multi-stage tournament when some results are carried over?," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 44(3), pages 683-707, September.
    8. L'aszl'o Csat'o & L'aszl'o Marcell Kiss & Zsombor Sz'adoczki, 2023. "The allocation of FIFA World Cup slots based on the ranking of confederations," Papers 2310.19100, arXiv.org, revised May 2024.

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