Bidding for Sport Mega-Events

University of Adelaide, School of Economics Working Paper Series No.0089

28 Pages Posted: 7 Mar 2010

See all articles by John K. Wilson

John K. Wilson

University of South Australia - School of Commerce

Bernhard Lobmayr

University of South Australia

Richard Pomfret

University of Adelaide - School of Economics; CASE - Center for Social and Economic Research

Date Written: September 14, 2009

Abstract

Sport mega-events such as the Olympic Games and FIFA World Cup, or on a smaller scale the Commonwealth Games or regional events, attract competing bids from nations or cities. These bids are mostly made at tax-payers’ expense and spending is often large and non-transparent. Our paper addresses the question of why large sums of public money are spent to secure uncertain rights to host events which, according to ex post studies, often yield few gains. The paper models the bidding process, emphasising public choice aspects to identify the interaction of potential beneficiaries and policymakers’ interests. The paper's empirical part examines bids from the state of South Australia, a bidder for various sports mega (or not so mega-) events with a mixed record of success, as a case study of the economics of bidding. The case study highlights the importance of institutional specificity when applying the model to individual events, the role of lobbies and of non-transparency, and path dependency.

Keywords: Bidding, Sports

JEL Classification: L83, D72, H76

Suggested Citation

Wilson, John K. and Lobmayr, Bernhard and Pomfret, Richard, Bidding for Sport Mega-Events (September 14, 2009). University of Adelaide, School of Economics Working Paper Series No.0089, Available at SSRN: https://ssrn.com/abstract=1566283 or http://dx.doi.org/10.2139/ssrn.1566283

John K. Wilson

University of South Australia - School of Commerce ( email )

37-44 North Terrace
Adelaide SA 5000, South Australia 5001
Australia

Bernhard Lobmayr

University of South Australia ( email )

37-44 North Terrace, City West Campus
Adelaide, South Australia 5001
Australia

Richard Pomfret (Contact Author)

University of Adelaide - School of Economics ( email )

Adelaide SA, 5005
Australia
+61 8 8303 4751 (Phone)
+61 8 8223 1460 (Fax)

CASE - Center for Social and Economic Research ( email )

Al. Jana Pawła II 61/212
Warsaw, 01-031
Poland
+48 22 622 66 27 (Phone)
+48 22 828 60 69 (Fax)

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