Asymmetric Opportunities After an Unsuccessful Sports Career. (June 2021)

• Record Type: Journal Article
• Authors: Grossmann, Martin
• Is Part Of: Journal of sports economics. Volume 22:Number 5(2021)
• Page Start: 587
• Page End: 612
• Publication Date: 2021-06
• Subjects: sports career -- contest -- outside option; Sports -- Economic aspects -- Periodicals; Sports administration -- Periodicals; 338.47796
• DOI: 10.1177/1527002521995874
• Languages: English
• ISSNs: 1527-0025

Abstract

Contestants enter a risky contest when pursuing a sports career or choose a secure outside option. If contestants enter this contest but their sports career fails, they may have asymmetric career opportunities outside of sport. Greater opportunities reduce the risk of entering this contest. However, contestants' incentives to exert effort decrease. Two types of equilibria exist if the initial pool of contestants is large. Either only types with high opportunities or only types with low opportunities enter the sports contest. If the initial pool of contestants is low, both types of contestants participate in the contest.