EC325: The Economics of Sports and Games

Module code: EC325

Module provider: Economics; School of Philosophy, Politics and Economics

Credits: 20

Level: Level 3 (Honours)

When you'll be taught: Semester 1

Module convenor: Professor James Reade, email: j.j.reade@reading.ac.uk

Pre-requisite module(s): BEFORE TAKING THIS MODULE YOU MUST TAKE EC204 OR TAKE EC204NU OR TAKE IC205 OR TAKE EC207 (Compulsory)

Co-requisite module(s):

Pre-requisite or Co-requisite module(s):

Module(s) excluded:

Placement information: NA

Academic year: 2024/5

Available to visiting students: Yes

Talis reading list: Yes

Last updated: 23 May 2024

Overview

Module aims and purpose

“Ask not what economics can do for sports - ask what sports can do for economics”.*

Sports can offer rare moments of clarity to social scientists within an otherwise complex real world.  The competitive environments within sport provide laboratories to study human behaviour, to test theories, and to observe the effects of policy.  For example, professional sports offer a rare glimpse of game theory in action, in a strictly controlled environment outside of the laboratory, and with participants who ought to be truly expert in strategic behaviour (e.g., penalty kicks in football, the serve in tennis, and picking a googly or slower ball in cricket).

This module also introduces students to the “Peculiar Economics of Professional Sports”** itself. We consider various sports and games from an economic perspective, as well as other markets related to sports, addressing questions such as:

The uncertainty of outcome hypothesis still relevant, or do we instead prefer to watch sports for the surprise and suspense?

Are betting markets efficient or are there systematic biases that bettors could potentially profit from?

Is a major tournament, such as the Football World Cup or Olympic Games, ever economically beneficial to the host city and country? Or is hosting instead just a gift to the world (or a political gesture)?

*Quotation from Bar-Eli, Krumer and Morgulev in the Journal of Behavioral and Experimental Economics, December 2020.

**The title of a seminal article by Walter Neale in The Quarterly Journal of Economics, February 1964.

Module learning outcomes

By the end of the module, it is expected that students will be able to:

1. Describe a range of ways in which economic theory has been applied to the context of sport
2. Apply economic theories to understand behaviour and interaction in sport
3. Design models which allow economic theory to be tested through the prism of sport
4. Appreciate the role sport can play in helping us understand more about how economies and various markets work more generally

Module content

• The theory of contests
• Competitive balance/inequality
• The demand for sport
• Theories of a league and talent allocation
• Superstar economics
• Game theory in the arena
• Mega events (e.g. the Olympics)
• Forecasting in sport and the efficiency of betting and prediction markets

Structure

Teaching and learning methods

This module covers the global world of sports, covering a diverse range of contexts.

Study hours

At least 20 hours of scheduled teaching and learning activities will be delivered in person, with the remaining hours for scheduled and self-scheduled teaching and learning activities delivered either in person or online. You will receive further details about how these hours will be delivered before the start of the module.

Please note the independent study hours above are notional numbers of hours; each student will approach studying in different ways. We would advise you to reflect on your learning and the number of hours you are allocating to these tasks.

Semester 1 The hours in this column may include hours during the Christmas holiday period.

Semester 2 The hours in this column may include hours during the Easter holiday period.

Summer The hours in this column will take place during the summer holidays and may be at the start and/or end of the module.

Assessment

Requirements for a pass

Students need to achieve an overall module mark of 40% to pass this module.

Summative assessment

Penalties for late submission of summative assessment

The Support Centres will apply the following penalties for work submitted late:

Assessments with numerical marks

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of three working days;
• the mark awarded due to the imposition of the penalty shall not fall below the threshold pass mark, namely 40% in the case of modules at Levels 4-6 (i.e. undergraduate modules for Parts 1-3) and 50% in the case of Level 7 modules offered as part of an Integrated Masters or taught postgraduate degree programme;
• where the piece of work is awarded a mark below the threshold pass mark prior to any penalty being imposed, and is submitted up to three working days after the original deadline (or any formally agreed extension to the deadline), no penalty shall be imposed;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

Assessments marked Pass/Fail

• where the piece of work is submitted within three working days of the deadline (or any formally agreed extension of the deadline): no penalty will be applied;
• where the piece of work is submitted more than three working days after the original deadline (or any formally agreed extension of the deadline): a grade of Fail will be awarded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/qap/penaltiesforlatesubmission.pdf

You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Formative assessment

Formative assessment is any task or activity which creates feedback (or feedforward) for you about your learning, but which does not contribute towards your overall module mark.

Reassessment

Additional costs