Archive for July 7th, 2006

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Institutions Matter: Rules, Outcomes, and the World Cup

July 7, 2006

Lynne Kiesling

Over at the Sports Economist Brian has a post with three recommendations to improve international soccer: post-match review and penalties for diving and melodrama, more granularity in penalties around the penalty box, and two more officials on the field. I chuckled when Brian referred to “Sepp Blatter and the FIFAcrats who seem to have a secret love of Italian theater”, with which I heartily agree; FIFA seems incredibly uninclined to do anything constructive to change the incentives facing players or referees.

As for the player incentives, Brian links to an article about Franz Beckenbauer’s efforts to “to stop the increasing trend towards play-acting and feigning injury which has blighted matches at the World Cup”. Brian’s suggestion of having an allegedly injured player spend, say, 5 minutes off the pitch when a trainer is called out is a good one. It is similar in incentive compatibility to the policy that the KP Spouse and I have advocated for years in the NHL: if you lay an illegal check on someone that puts them out of play for 5 games, you sit out those 5 games. Without pay.

The referee incentives FIFA presents I find utterly perplexing. They said they would call tackling from behind and shirt grabbing more closely than ever this year, but in practice they called lots of fouls where there was no apparent foul, and handed out yellow cards for calls that would otherwise usually be just fouls. And then FIFA rewards the most inconsistent referees by letting them ref subsequent games! I thought Jorge Larrionda deserved to be sent home after the US-Italy game, but he officiated the France-Portugal game! And he called that one totally differently from how he called US-Italy.

An article in today’s Wall Street Journal highlights some of these inconsistencies:

In this summer’s World Cup, however, it’s not clear that all the pros are playing by the same rules. Before the tournament, FIFA instructed officials to issue yellow cards for certain types of fouls, such as tackles from behind and shirt-grabbing. The organization even sent videotapes to teams warning of harsher treatment for those infractions.

Mixed Messages

But after a flood of players had to sit out games in the tournament’s first two weeks, FIFA began sending mixed messages. Joseph “Sepp” Blatter, FIFA’s president, complained that some refs weren’t enforcing the new guidelines. At the same time, refs involved in controversial calls were rewarded with assignments to work later rounds. Uruguayan official Jorge Larrionda, who ejected three players in the U.S.-Italy game and issued 13 yellow cards in three games, was selected to officiate Wednesday’s semifinal between France and Portugal. “It’s tough because you have to balance what FIFA has said with the issue of kicking players out of the game,” says American ref Brian Hall, who worked the 2002 World Cup and now officiates in Major League Soccer.

In the same article, a FIFA official is quoted as opposing video review of calls:

FIFA’s main objection: Reviewing disputed calls would compromise the sacrosanct “flow” of a match. “The fluidity and the rhythm of the game are so important,” says Esse Baharmast, director of international referee training for the U.S. Soccer Federation, who’s been a referee trainer and assessor for FIFA in Germany. “The game is played by humans and should be reffed by humans.”

These FIFA guys failing to ask the “compared to what?” opportunity cost question. All of these silly fouls and ridiculous yellow cards, and the dive/injury melodrama, eviscerate the flow of the match. The threat of video review should provide a contestability-like dynamic incentive to induce more measured officiating, as well as less player melodrama.

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Mike Munger: Rent Seek and You Shall Find

July 7, 2006

Lynne Kiesling

Mike Munger’s new essay on rent seeking is superb. Mike is a fluid and persuasive writer, so he does a great job of explaining some of the hardest-to-understand aspects of rent seeking. In particular, the competition for politically-distributed resources means that people will use up resources to get the political goods. That competition usually means that more resources are expended in the chase than are actually available for the winning. That’s how rent seeking destroys resources.

In particular I like this passage:

But in our political system, we have an industry dominated by two firms, Republicans and Democrats. Together they have a 99 percent market share. They have undertaken actions at the state and national levels to make it practically impossible for any other party to enter. This system forecloses good competition, the kind that raises new ideas or asks embarrassing questions. We have been fooled into thinking the system is competitive, because we constantly see vigorous rent-seeking competition for access to the public purse. This bad competition is an expensive gladiatorial combat, where Congress keeps a lot of the ticket receipts. Some of the rest of the spending is simply wasted building those expensive office suites on K Street and using the time of those lobbyists who could be doing something more productive.

Markets, on the other hand, encourage raising new ideas and allow for embarrassing questions to be asked, and if not answered to the satisfaction of, say, shareholders, market values reflect that fact.

I also recommend the podcast with Mike at the bottom of the essay.

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