Scorecasting: The Hidden Influences Behind How Sports Are Played and Games Are Won

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by L. Jon Wertheim


  Inasmuch as writing a book is likened to childbirth, Scott Waxman, our agent, was first a capable midwife and then a fine pediatrician. We owe a debt of gratitude to a small army who contributed ideas, comments, anecdotes, interviews, and stories for the book: Mike Carey, Frank Cheng, Tomago Collins, Joshua Coval, Mark Cuban, Jessica Dosen, Welington Dotel, David Epstein, Eugene Fama, Tom Gilovich, Jeff Heckelman, John Huizinga, Kevin Kelley, Steven Levitt, Cade Massey, Mike McCoy, Jack Moore, Daryl Morey, Mike Morin, Natxo Palacios-Huerta, Jeff Pearlman, Tom Perrotta, Devin Pope, Gregg Popovich, Tom Ricketts, Ryan Rodenberg, Scott Rosner, Jeff Spielberger, Susan Szeliga, Richard Thaler, Shino Tsurubuchi, and Charles “Sandy” Weil.

  A special thank-you to Daniel Cervone, a University of Chicago undergrad so enamored with sports that he decided to spend a year between college and grad school helping us gather, organize, and analyze an absolutely massive amount of data. Good luck with your doctoral studies at Harvard—we suspect we’ll be hearing great things from you soon.

  Also, special thanks to Rebecca Sun, who challenged and improved our material with her sharp mind, sharp eye, and painstaking attention to detail. (Every author should inquire about her services.) So long as Sports Illustrated continues to attract talent of her caliber, it bodes well for the continued strength of the magazine.

  PERSONAL ACKNOWLEDGMENTS

  I owe a huge debt to my colleagues at the University of Chicago, my co-authors, and my thesis advisors from grad school at UCLA. Everything I’ve learned about economics and finance is owed to them. I am grateful to sit in the wonderful research environment at the Booth School of Business at the University of Chicago. There is simply no better place for novel research and critical thinking. Many thanks to my co-author, L. Jon Wertheim—whom I first knew as Lewis—who is not only a brilliant writer and unconventional thinker, but a great friend. It’s been terrific catching up with him over the past two years. Finally, a heartfelt thanks to my wife, Bonnie, and to our children, Isaac, Josh, Sam, and little Sarah, who arrived right around chapter 10.

  —TJM

  I’m in arrears to Terry McDonell, Chris Hunt, and the other Sports Illustrated editors who could not have been more accommodating and supportive of this project. Warm thanks to my co-author, Tobias Moskowitz—whom I first knew as Toby—a first-rate thinker, economist, and analyst. He made a hell of a doubles partner on the Indiana junior tennis circuit, and a better one twenty years later on this project. Finally, my deepest thanks, as ever, are reserved for Ellie, Ben, and Allegra.

  —LJW

  BIBLIOGRAPHY

  A list of relevant papers and articles organized by chapter, with web links where possible.

  WHISTLE SWALLOWING

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  Cervone, Daniel, and Tobias J. Moskowitz. “Whistle Swallowing: Officiating and the Omission Bias.” Working paper, University of Chicago and Harvard University (Mar. 2010).

  Kordes-de Vaal, H. Johanna. “Intention and the Omission Bias: Omissions Perceived as Nondecisions.” Acta Psychologica 93 (1996): 161–72.

  Price, Joseph, Marc Remer, and Daniel F. Stone. “Sub-Perfect Game: Profitable Biases of NBA Referees” (Dec. 1, 2009). Available at SSRN: http://ssrn.com/abstract=1377964

  Spranca, M., E. Minsk, and J. Baron. “Omission and Commission in

  Judgment and Choice.” Journal of Experimental Social Psychology 27 (1991): 76–105.

  GO FOR IT

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  Bisland, R. B. “A Stochastic CAI Model for Assisting in the Design of Football Strategy.” SIGSIM Simul. Dig. 10, nos. 1–2 (Sep. 1978): 28–30. http://doi.acm.org/10.1145/1102786.1102790

  Boronico, J. S., and S. L. Newbert. “Play Calling Strategy in American Football: A Game-Theoretic Stochastic Dynamic Programming Approach.” Journal of Sport Management 13, no. 2 (1999): 103–13.

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  Romer, David H. “Do Firms Maximize?: Evidence from Professional Football.” Journal of Political Economy (University of Chicago Press) 114, no. 2 (Apr. 2006): 340–65.

  ______. “It’s Fourth Down and What Does the Bellman Equation Say?: A Dynamic Programming Analysis of Football Strategy.” NBER Working Paper No. W9024 (June 2002). Available at SSRN: http://ssrn.com/abstract=316803

  Rubenson, D. L. “On Creativity, Economics, and Baseball.” Creativity Research Journal 4, no. 2 (1991): 205–9. http://dx.doi.org/10.1080/10400419109534391

  HOW COMPETITIVE ARE COMPETITIVE SPORTS?

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  Humphreys, Brad R. “Alternative Measures of Competitive Balance in Sports Leagues.” Journal of Sports Economics 3, no. 2 (May 2002): 133–48.

  Neale, Walter C. “The Peculiar Economics of Professional Sports: A Contribution to the Theory of the Firm in Sporting Competition and in Market Competition.” The Quarterly Journal of Economics 78, no. 1 (1964): 1–14.

  Ross, Stephen F., and Stefan Szymanski. “Open Competition in League Sports.” Wisconsin Law Review, 2002: 625. Available at SSRN: http://ssrn.com/abstract=350960 or http://dx.doi.org/10.2139/ssrn.350960

  Szymanski, Stefan. “The Champions League and the Coase Theorem.” Scottish Journal of Political Economy 54, no. 3 (July 2007): 355–73. Available at SSRN: http://ssrn.com/abstract=992044 or http://dx.doi.org/10.1111/j.1467-9485.2007.00419.x

  Vrooman, John. “A General Theory of Professional Sports Leagues.” Southern Economic Journal 61, no. 4 (Apr. 1995): 971–90.

  TIGER WOODS IS HUMAN

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  Kahneman, D., and A. Tversky. “Prospect Theory: An Analysis of Decisions Under Risk.” Econometrica 47 (1979): 263–91.

  Pope, Devin G., and Maurice E. Schweitzer. “Is Tiger Woods Loss Averse?: Persistent Bias in the Face of Experience, Competition, and High Stakes.” American Economic Review, June 13, 2009.

  Thaler, R. “Toward a Positive Theory of Consumer Choice.” Journal of Economic Behavior and Organization 1 (1980): 39–60.

  Tom, Sabrina M., Craig R. Fox, Christopher Trepel, and Russell A. Poldrack. “The Neural Basis of Loss Aversion in Decision-Making Under Risk.” Science 315 (2007): 515–18.

  THE VALUE OF A BLOCKED SHOT

  Huizinga, J. “The Value of a Blocked Shot in the NBA: From Dwight Howard to Tim Duncan.” MIT Sloan Sports Analytics Conference, 2010.

  ROUNDING FIRST

  Franke, R., W. Mayew, and Y. Sun. “Do Pennies Matter?: Investor Relations Consequences of Small Negative Earnings Surprises.” Review of Accounting Studies 15, no. 1: 220–42.

  Pope, D., and U. Simonsohn. “Round Numbers as Goals: Evidence from Baseball, SAT Takers, and the Lab.” Psychological Science, in press.

  THANKS, MR. ROONEY

  Madden, Janice F., and Matthew Ruther. “Has the NFL’s Rooney Rule Efforts ‘Leveled the Field’ for African American Head Coach Candidates?” Working paper, Wharton Business School, University of Pennsylvania, 2010.

  SO, WHAT IS DRIVING THE HOME FIELD ADVANTAGE?

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  Boyko, R., A. Boyko, and M. Boyko. “Referee Bias Contributes to Home Advantage in English Premiership Football.” Journal of Sports Sciences 25, no. 11 (2007): 1185–94. http://dx.doi.org/10.1080/02640410601038576

  Gandar, John M., Richard A. Zuber, and Reinhold P. Lamb. “The Home Field Advantage Revisited: A Search for the Bias in Other Sports Betting Markets.” Journal of Economics and Business 53, no. 4 (Jul.–Aug. 2001): 439–53. ISSN 0148–6195, DOI 10.1016/S0148–6195(01)00040–6 (http://www.sciencedirect.com/science/

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  Johnston, R. “On Referee Bias, Crowd Size, and Home Advantage in the English Soccer Premiership.” Journal of Sports Sciences 26, no. 6 (2008): 563–68. http://dx.doi.org/10.1080/02640410701736780

  Nevill, A. M., N. J. Balmer, and A. Mark Williams. “The Influence of Crowd Noise and Experience upon Refereeing Decisions in Football.” Psychology of Sport and Exercise 3, no. 4 (Oct. 2002): 261–72. ISSN 1469–0292; DOI 10.1016/S1469–0292(01)00033–4 (http://www.sciencedirect.com/science/article/

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  Nevill, A. M., and R. L. Holder. “Home Advantage in Sport: An Overview of Studies on the Advantage of Playing at Home.” Sports Medicine 28, no. 4 (Oct 1999): 221–36 (16).

  Pettersson-Lidbom, Per, and Mikael Priks. “Behavior Under Social Pressure: Empty Italian Stadiums and Referee Bias.” Economics Letters 108, no. 2 (Aug. 2010): 212–14. ISSN 0165–1765; DOI 10.1016/j.econlet.2010.04.023 (http://www.sciencedirect.com/science/article/B6V84-4YWYYNG-1

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  Schwartz, Barry, and Stephen F. Barsky. “The Home Advantage.” Social Forces 55, no. 3 (Mar. 1977): 641–62.

  Sherif, Muzafer. The Psychology of Social Norms. New York: Harper Collins, 1936.

  Smith, Erin E., and Jon D. Groetzinger. “Do Fans Matter?: The Effect of Attendance on the Outcomes of Major League Baseball Games.” Journal of Quantitative Analysis in Sports 6, no. 1 (2010), article 4.

  Sutter, Matthias, and Martin G. Kocher. “Favoritism of Agents: The Case of Referees’ Home Bias.” Journal of Economic Psychology 25, no. 4 (Aug. 2004): 461–69. ISSN 0167–4870; DOI: 10.1016/S0167–4870 (03)00013–8 (http://www.sciencedirect.com/science/article/B6V8H-4841015–3

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  Vergin, Roger C., and John J. Sosik. “No Place Like Home: An Examination of the Home Field Advantage in Gambling Strategies in NFL Football.” Journal of Economics and Business 51, no. 1 (Jan. 2, 1999): 21–31. ISSN 0148–6195; DOI 10.1016/S0148–6195 (98)00025–3. (http://www.sciencedirect.com/science/article/

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  OFF THE CHART

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  Grier, Kevin B., and Robert D. Tollison. “The Rookie Draft and Competitive Balance: The Case of Professional Football.” Journal of Economic Behavior and Organization (Elsevier) 25, no. 2 (Oct. 1994): 293–98.

  Kahn, Lawrence M. “The Sports Business as a Labor Market Laboratory.” Journal of Economic Perspectives (American Economic Association) 14, no. 3 (Summer 2000): 75–94.

  Kahn, Lawrence M., and Malav Shah. “Race, Compensation, and Contract Length in the NBA: 2001–2002.” Industrial Relations 44, no. 3 (July 2005): 444–62. Available at SSRN: http://ssrn.com/abstract=739935

  Massey, Cade, and Richard H. Thaler. “The Loser’s Curse: Overconfidence vs. Market Efficiency in the National Football League Draft,” Aug. 14, 2010. Available at SSRN: http://ssrn.com/abstract=697121

  Rosen, Sherwin, and Allen Sanderson. “Labor Markets in Professional Sports.” NBER Working Papers, National Bureau of Economic Research, Inc., no. 7573 (2000). http://econpapers.repec.org/RePEc:nbr:nberwo:7573

  Staw, Barry M., and Ha Hoang. “Sunk Costs in the NBA: Why Draft Order Affects Playing Time and Survival in Professional Basketball.” Administrative Science Quarterly 40, no. 3 (Sep. 1995): 474–94.

  Thaler, Richard. The Winner’s Curse: Paradoxes and Anomalies of Economic Life. New York: Free Press, 1991.

  HOW A COIN TOSS TRUMPS ALL

  Burke, Brian, advancedNFLstats.com

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  WHAT ISN’T IN THE MITCHELL REPORT?

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  Simpson, Tyler M. “Balking at Responsibility: Baseball’s Performance-Enhancing Drug Problem in Latin America.” Law and Business Review of the Americas 14 (2008): 369.

  Spagnuolo, Diana L. “Swinging for the Fence: A Call for Institutional Reform as Dominican Boys Risk Their Futures for a Chance in Major League Baseball.” University of Pennsylvania Journal of International Economic Law 24 (2003): 263.

  DO ATHLETES REALLY MELT WHEN ICED?

  Berry, S., and C. Wood. “The Cold-Foot Effect.” Chance 17, no. 4 (2004): 47–51.

  THE MYTH OF THE HOT HAND

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  Albert, J., and P. Williamson. “Rejoinder.” Journal of the American Statistical Association 88 (1993): 1194–96.

  ________. “Using Model/Data Simulations to Detect Streakiness.” The American Statistician 55 (2001): 41–50.

  Albright, S. C. “A Statistical Analysis of Hitting Streaks in Baseball.” Journal of the American Statistical Association 88 (1993): 1175–83.

  Ayton, P., and I. Fischer. “The Hot Hand Fallacy and the Gambler’s Fallacy: Two Faces of Subjective Randomness?” Memory and Cognition 32 (2004): 1369–78.

  Bar-Eli, Michael, Simcha Avugos, and Markus Raab. “Twenty Years of ‘Hot Hand’ Research: Review and Critique.” Psychology of Sport and Exercise 7 (2006): 525–53.

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  Clark, R. D. “An Analysis of Streaky Performance on the LPGA Tour.” Perceptual and Motor Skills 97 (2003): 365–70.

  ________. “Examination of Hole-to-Hole Streakiness on the PGA Tour.” Perceptual and Motor Skills 100 (2005): 806–14.

  _________. “Streakiness Among Professional Golfers: Fact or Fiction?” International Journal of Sport Psychology 34 (2003):
63–79.

  Croucher, J. S. “An Analysis of the First 100 Years of Wimbledon Tennis Finals.” Teaching Statistics 3 (1981): 72–75.

  Dorsey-Palmateer, R., and G. Smith. “Bowlers’ Hot Hands.” The American Statistician 58 (2004): 38–45.

  Forthofer, R. “Streak Shooter: The Sequel.” Chance 4 (1991): 46–48.

  Frame, D., E. Hughson, and J. C. Leach. “Runs, Regimes, and Rationality: The Hot Hand Strikes Back.” Working paper, 2003.

 

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