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

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  • Wladimir Andreff

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

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.

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  • Wladimir Andreff, 2012. "The winner's curse: why is the cost of sports mega-events so often underestimated?," Post-Print halshs-00703466, HAL.
    • Handle: RePEc:hal:journl:halshs-00703466
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00703466
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    Cited by:

    1. Vöpel, Henning, 2014. "Olympische Spiele in Hamburg - produktive Vision oder teure Fiktion? Regionalwirtschaftliche und standortpolitische Chancen und Risiken einer Bewerbung Hamburgs für die Ausrichtung Olympischer Spiele," HWWI Policy Papers 84, Hamburg Institute of International Economics (HWWI).
    2. Barth Michael, 2015. "Contemporary Research in Sports Economics: Proceedings of the 5th ESEA Conference: Besprechung des von Oliver Budzinski und Arne Feddersen herausgegebenen gleichnamigen Tagungsbandes," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 66(1), pages 353-359, January.
    3. Elena Trubina, 2019. "The urban commodity futures of the Olympics: Examining the multiscalar processes of the Games," Environment and Planning A, , vol. 51(8), pages 1703-1719, November.
    4. MASSIANI, Jérôme, 2022. "Computable General Equilibrium assessment of mega-events: Issues and possible solutions," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 920-942.
    5. Matthias Firgo & Oliver Fritz, 2023. "Regionalwirtschaftliche und touristische Effekte von Sportgroßveranstaltungen," WIFO Monatsberichte (monthly reports), WIFO, vol. 96(7), pages 481-490, July.
    6. Müller, Martin, 2017. "Approaching paradox: Loving and hating mega-events," Tourism Management, Elsevier, vol. 63(C), pages 234-241.

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