Previous Chapter Chapter 15: The Cost of Hosting International Sports Events
Chapter 15: The Cost of Hosting International Sports Events
Local politicians and decision makers are easy to convince that for a country/city it will be worth hosting an international mega-sporting event. An ex ante study of the economic and social impacts exhibiting a net benefit will finalise the consensus. However, it is nearly impossible to succeed in hosting a mega-sporting event at expected costs and benefits. The economic rationale of this paradox lies in awarding such events through an auction-like procedure which turns out to trigger a winner’s curse. In this chapter, we will outline a critical examination of how a winner’s curse develops and to what extent its consequences can be managed.
First, the ...