Favoritism Under Social Pressure

  title={Favoritism Under Social Pressure},
  author={Luis Garicano and Ignacio Palacios-Huerta and Canice Prendergast},
  journal={Review of Economics and Statistics},
This paper is concerned with the effect of nonmonetary incentives on behavior, in particular with the study of social pressure as a determinant of corruption. We offer empirical evidence that shows how professional soccer referees favor home teams in order to satisfy the crowds in the stadium. Referees have discretion over the addition of extra time at the end of a soccer game to compensate for lost time due to unusual stoppages. We find that referees systematically favor home teams by… 

Social Pressure or Rational Reactions to Incentives? A Historical Analysis of Reasons for Referee Bias in the Spanish Football

A relevant question in social science is whether cognitive bias can be instigated by social pressure or is it just a rational reaction to incentives in place. Sport, and association football in

The Influence of Social Forces: Evidence from the Behavior of Football Referees

Analyzing the neutrality of referees during 12 German premier league (1. Bundesliga) soccer seasons, this paper documents evidence that social forces influence agents’ decisions. Referees, who are

In Support of the Supporters? Do Social Forces Shape Decisions of the Impartial?

Analyzing the neutrality of referees during nine German premier league (1. Bundesliga) soccer seasons, this paper documents evidence that social forces influence agents' preferences and decisions.

Social Pressure Influences Decisions of Individuals: Evidence from the Behavior of Football Referees

Analyzing the neutrality of referees during twelve German premier league (1st Bundesliga) football seasons, this paper documents evidence that social forces influence agents' preferences and

Eliminating Supportive Crowds Reduces Referee Bias

We use a series of historical natural experiments in association football (soccer) to test whether social pressure affected behaviour and outcomes. We observe how the normal advantage for the home

Favoritism and Financial Incentives: A Natural Experiment

Principals who exercise favouritism towards certain agents may harm those who are not so favoured. Other papers have produced evidence consistent with the presence of such favouritism but have been

The Economics of Favoritism

This paper analyzes why agents are interested in belonging to a group of friends which is used as an alternative search channel by both employers and workers. We use a principal-agent model with two

Are subjective evaluations biased by social factors or connections? An econometric analysis of soccer referee decisions

Many incentive contracts are based on subjective evaluations and contractual disputes depend on judges’ decisions. However, subjective evaluations raise risks of favouritism and distortions. Sport



Professionals Play Minimax

During the last few decades game theory has contributed to a reshaping of important aspects of the methodology of Economics and other social sciences. In large part this is because the language,

Social Economics: Market Behavior in a Social Environment

Acknowledgments Part I The Effect of Social Capital on Market Behavior 1. The Importance of Social Interactions 2. Social Forces, Preferences, and Complementarity 3. Are Choices "Rational" When

Do Players React to Sanction Changes? Evidence from the English Premier League

This paper evaluates the impact on three types of offences, red card fouls, yellow card fouls, and no-card fouls of Federation Internationale de Football Association's introduction of a rule change

Nationalism in Winter Sports Judging and its Lessons for Organizational Decision Making

This paper exploits nationalistic biases in Olympic winter sport judging to study the problem of designing a decision making process that uses the input of potentially biased agents. Judges score

A Theory of Conformity

This paper analyzes a model of social interaction in which individuals care about status as well as "intrinsic" utility (which refers to utility derived directly from consumption). Status is assumed

Orchestrating Impartiality: The Impact of

A change in the way symphony orchestras recruit musicians provides an unusual way to test for sex-biased hiring and it is found that the screen increases by 50% the probability a woman will be advanced out of certain preliminary rounds and enhances the likelihood a female contestant will be the winner in the final round.

Testing Mixed-Strategy Equilibria When Players Are Heterogeneous: The Case of Penalty Kicks in Soccer

The concept of mixed strategy is a fundamental component of game theory, and its normative importance is undisputed. However, its empirical relevance has sometimes been viewed with skepticism. The

Crime on the Court

This paper addresses the question, What happens to the arrest rate when the number of law enforcers increases? One implication of the analysis is that arrest statistics are a poor instrumental

A theory of social custom, of which unemployment may be one consequence

This paper examines adherence to social customs. Models of social customs are found to be inherently multi-equilibrial. It is found that social customs which are disadvantageous to the individual may

The Sports Business as a Labor Market Laboratory

With superior data on compensation and productivity, as well as the occurrence of abrupt, dramatic market structure and player allocation rules changes, sports labor markets offer an excellent