Do Firms Maximize? Evidence from Professional Football

@article{Romer2006DoFM,
  title={Do Firms Maximize? Evidence from Professional Football},
  author={D. Romer},
  journal={Journal of Political Economy},
  year={2006},
  volume={114},
  pages={340 - 365}
}
  • D. Romer
  • Published 2006
  • Economics
  • Journal of Political Economy
This paper examines a single, narrow decision—the choice on fourth down in the National Football League between kicking and trying for a first down—as a case study of the standard view that competition in the goods, capital, and labor markets leads firms to make maximizing choices. Play‐by‐play data and dynamic programming are used to estimate the average payoffs to kicking and trying for a first down under different circumstances. Examination of actual decisions shows systematic, clear‐cut… Expand
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