Co-determination in Germany : the impact on the market value of the firm

Paper presented at the conference on "Employees and Corporate Governance", Columbia University Law School, New York, November 22, 199

Prize Structure and Performance: Evidence from NASCAR

The predictions that emerge from tournament theory have been tested in a number of sports-related settings. Since sporting events involving individuals (golf, tennis, running, auto racing) feature rank order tournaments with relatively large payoffs and easily observable outcomes, sports is a natural setting for such tests. In this paper, we test the predictions of tournament theory using a unique race-level data set from NASCAR. Most of the previous tests of tournament theory using NASCAR data have used either season level data or race level data from a few seasons. Our empirical work uses race level NASCAR data for 1,114 races over the period 1975-2009. Our results support the predictions of tournament theory: the larger the spread in prizes paid in the race, measured by the standard deviation of prizes paid or the interquartile range of prizes paid, the higher the average speed in the race. Our results account for the length of the track, the number of entrants, the number of caution flags, and unobservable year and week heterogeneity.NASCAR; tournament theory

Introduction to Symposium on Sports Economics

This is an introduction to the symposium whose papers follow this introduction.

The Returns to Scarce Talent: Footedness and Player Remuneration in European Soccer

We investigate the salary returns to the ability to play football with both feet. The majority of footballers are predominantly right footed. Using two data sets, a cross-section of footballers in the five main European leagues and a panel of players in the German Bundesliga, we find robust evidence of a substantial salary premium for two-footed ability, even after controlling for available player performance measures. We assess how this premium varies across the salary distribution and by player position.salary, two-footedness, premium

Career Duration a Competitive Environment: The Labor Market for Soccer Players in Germany

Using detailed information on every single player who appeared in at least one match in the history of the first division in German soccer between 1963/64 and 2002/03 we study the determinants of individual career duration. Although team characteristics and changes in the institutional environment have a statistically significant impact, it is the players’ individual performance that counts: Player age, number of matches played, goals scored as well as player position have a significant impact on the individual’s probability of being terminated.

Legal Restrictions on Buyout Fees: Theory and Evidence from German Soccer

We perform a theoretical and empirical analysis of the impact of transfer fee regulations on professional soccer in Europe. Based on a model on the interaction of moral hazard and heterogeneity, we show (i) how the regulations effect contract durations and wages, (ii) that contracting parties have an incentive to agree upon inefficiently long contracts, (iii) how these incentives vary with the legal system, and (iv) how the relationship between contract duration and performance also depends on the legal system. With one exception, all theoretical results are empirically confirmed using a comprehensive data set from the top German Soccer League ("Bundesliga").regulation of labor markets; long-term contracts; sports economics; breach of contract; empirical contract theory

Reform der deutschen Unternehmensmitbestimmung: Unverzichtbar oder überflüssig?

Die paritätische Mitbestimmung gibt es in Deutschland mittlerweile seit 30 Jahren. Demnächst soll eine Kommission Vorschläge zu ihrer Modernisierung und Anpassung an EU-Regelungen unterbreiten. Welche Vor- und Nachteile hat die Mitbestimmung aus theoretischer Sicht? Welche Wirkungen sind auf die Effizienz und Produktivität der Unternehmen feststellbar? --

Prize Structure and Performance: Evidence from NASCAR

Abstract: The predictions that emerge from tournament theory have been tested in a number of sports-related settings. Since sporting events involving individuals (golf, tennis, running, auto racing) feature rank order tournaments with relatively large payoffs and easily observable outcomes, sports is a natural setting for such tests. In this paper, we test the predictions of tournament theory using a unique race-level data set from NASCAR. Most previous tests of tournament theory using NASCAR data used either season level data or race level data from a few seasons. Our empirical work uses race and driver level NASCAR data for 1114 races over the period 1975–2009. Our results support the predictions of tournament theory: the larger the spread in prizes paid in the race, measured by the standard deviation or interquartile range of prizes paid, the higher the average speed in the race. Our results account for the length of the track, number of entrants, number of caution flags, and unobservable year- and week-level heterogeneit