Soccer Economics
If I am a professor, I am going to teach this module and then see what soccer can teach us about economics.
Apparently, some guy has already beat me to it. Well these 2 things take up say...
30% of my time currently. So it's like a big part of my life.
You could think about the clubs = Firms
Players = Labour
Coach, pitches, training equipment: Capital.
(In the true sprit of the game) Output : GOALS
Consumers: Us... and I pay market price to see goals... Just think why the highlight shows only show goals...
Well, what i read that i like in the article was some analogies that he used...
Because Kaka and Shevchenko, Ronaldinho and Eto'o, Dwight Yorke and Andy Cole, are playing in the same team, they get increasing returns to scale and they are able to produce more output than they would have been alone.
That's why Man U won the treble in '99... they got huge increasing returns to scale because of the combination of players
As the big clubs accumulate capital and grow bigger, they hire more labour in hope of getting more output (increasing returns though..) That's a reason why we see the big clubs getting bigger, while the small ones are finding it hard to catch up.
Talking about the labour market, I think a soccer player has the easiest access to any country in the world than any other profession. Europeans, South Americans, Africans, Japanese, Koreans, play their trade in European leagues. Even if you were a professional, like a doctor...it's not that easy.
Now we acknowledge that European leagues have the highest standard of soccer in the world, all these multi-national players play there, and then what happens?
A very interesting statistic was that the margin of matches in the World Cup has decreased drastically. In 2002, it was only 0.88 i.e: teams won by 0.88 goals compared to margins we see in the 90s.
Turkey and South Korea surprised everyone by reaching the top 4, beating several traditional powerhouses along the way.
What has all these soccer talk got to do with the real world? Suppose labour movement is less restricted, but people are only allowed to work in the "advanced countries" for a restricted period of time say from 2 to 5 years, before having to go back to their homeland. Well sounds like an African player playing in Europe before representing their own country in the world cup isn't it?
That guy who wrote this idea in the newspaper was not a genius, just some commonsense and some inference that bring complicated economics to ground.
Apparently, some guy has already beat me to it. Well these 2 things take up say...
30% of my time currently. So it's like a big part of my life.
You could think about the clubs = Firms
Players = Labour
Coach, pitches, training equipment: Capital.
(In the true sprit of the game) Output : GOALS
Consumers: Us... and I pay market price to see goals... Just think why the highlight shows only show goals...
Well, what i read that i like in the article was some analogies that he used...
Because Kaka and Shevchenko, Ronaldinho and Eto'o, Dwight Yorke and Andy Cole, are playing in the same team, they get increasing returns to scale and they are able to produce more output than they would have been alone.
That's why Man U won the treble in '99... they got huge increasing returns to scale because of the combination of players
As the big clubs accumulate capital and grow bigger, they hire more labour in hope of getting more output (increasing returns though..) That's a reason why we see the big clubs getting bigger, while the small ones are finding it hard to catch up.
Talking about the labour market, I think a soccer player has the easiest access to any country in the world than any other profession. Europeans, South Americans, Africans, Japanese, Koreans, play their trade in European leagues. Even if you were a professional, like a doctor...it's not that easy.
Now we acknowledge that European leagues have the highest standard of soccer in the world, all these multi-national players play there, and then what happens?
A very interesting statistic was that the margin of matches in the World Cup has decreased drastically. In 2002, it was only 0.88 i.e: teams won by 0.88 goals compared to margins we see in the 90s.
Turkey and South Korea surprised everyone by reaching the top 4, beating several traditional powerhouses along the way.
What has all these soccer talk got to do with the real world? Suppose labour movement is less restricted, but people are only allowed to work in the "advanced countries" for a restricted period of time say from 2 to 5 years, before having to go back to their homeland. Well sounds like an African player playing in Europe before representing their own country in the world cup isn't it?
That guy who wrote this idea in the newspaper was not a genius, just some commonsense and some inference that bring complicated economics to ground.
