An Economist's Perspective on Match-fixing and Self-sabotage in Contests. (July 2015)

• Record Type: Journal Article
• Authors: Saha, Bibhas
• Is Part Of: IIM Kozhikode Society & Management Review. Volume 4:Number 2(2015:Jul.)
• Page Start: 77
• Page End: 85
• Publication Date: 2015-07
• Subjects: Sports betting -- corruption -- bribery -- match-fixing -- self-sabotage; Industrial management -- Periodicals; Industrial management -- India -- Periodicals; Industrial management -- Asia -- Periodicals; Business enterprises -- Periodicals; Business enterprises -- India -- Periodicals; Business enterprises -- Asia -- Periodicals; 658.005
• DOI: 10.1177/2277975215604952
• Languages: English
• ISSNs: 2277-9752

Abstract

In this note we provide an economist's perspective on self-sabotage in contests. When such self-sabotage is engineered at the behest of a third party for financial gains from betting markets, we see the twin problems of self-sabotage and betting corruption, which are known as the problem of match-fixing in sporting contests. We discuss the hidden incentives that different agents face in this environment. To curb match-fixing, legalization of betting would be a positive step followed by intelligent enforcement. Further, using a simple model we demonstrate that the risk of match-fixing diminishes with the number of teams involved in the contest.