Brands or Uncertainty? An Empirical Test of the Uncertainty of Outcome Hypothesis in Russian Football
The article deals with the theory of monopolistic competition under demand uncertainty. The authors consider the economy with labor immobility consisting of the high-tech sector with monopolistic competition and the standard sector with perfect competition. Preferences between sectors are specified by the Cobb – Douglas production function. It is assumed that companies make output decisions under preferences uncertainty and consumers’ distribution by sectors will be known by the time of realization. It means that firms are informed about consumer demand with accuracy up to a multiplicative uncertainty which is generated by random parameters in the Cobb – Douglas utility function. The paper shows that demand uncertainty leads to consistent growth of prices and wages in high-tech sector in relation to salaries in the second sector. The impact of uncertainty on welfare is ambiguous. In particular, under the known expected value of uncertainty customers derive benefit from exaggerated companies’ expectations about clients’ desire to consume high-tech goods.
In this paper we deal with mathematical modeling of team sport games based on cellular automata (CA). We describe some developments of CA models of football. Presumable learning and optimization problems in team modeling based on CA are discussed. Some general problems are discussed which are related to the accounting of mentality of game participants.
Recent developments in international football governance seem to be progressively leading toward an increasing use of technological devices for refereeing purposes. Opponents to change are often portrayed as old-fashioned or conservative. Philosophy might be of some help to overcome the dispute. In this paper, we first explore several concepts that are central to the current debate on football refereeing. Then, we determine the business of referees in relation to rules. We assess different arguments displayed regarding the role of chance and skills in competitions. Finally, we argue for the idea of referees as full players in football games.
Research question: This paper investigates how football sponsorship influences the financial performance of sponsors. We suggest a new instrumental variable to avoid endogeneity.
Research methods: We use an instrumental variable regression framework combined with a fixed effects model. The number of tweets containing both team and sponsor names are collected to use as the instrumental variable.
Results and findings: We analyze top European leagues. Our results show that football sponsorship is more charity than commercial investment. The analysis of determinants of becoming a sponsor and sponsorship amount shows that companies owned by individuals are more likely to become a sponsor.
Implications: Shareholders should be aware of sponsorship deals, and senior management should analyze the financial assumptions of such projects carefully.
The paper contains empirical estimates of how behavioral factor (an attitude towards risk), rationality and uncertainty influence on investment decisions (capital investment) of Russian companies. The research is guided by the models of Sandmo (1971), Bo and Sterken (2007). We have tested a hypothesis, that risk preferring companies tend to grow investment, while risk averse companies are more likely to decrease the number of investment projects under uncertainty. The following rational variables, explaining investment policy, are included into the model: sales growth, market power, return on equity, debt to equity ratio, current liquidity. Since the time span of the research includes both the crisis period (years 2008, 2009) and the period before the crisis (2004-2007) we have also estimated the time effect on the companies’ investments.
The following estimators have been used to get the results: ordinary least squares; fixed effects model; random effects model; panel data models with binary variables controlling time effects; Hausman-Teylor’s model, generalized method of moments.