ABSTRACT
This chapter defines what constitutes a "mega-event" and describes the history of these events and describes the short-run and long-run cost and benefits of hosting a mega-event. It explains the different ways to measure the economic impact of a mega-event and evaluates the potentially exaggerated claims of "mega-benefits" from mega-events. The chapter explains why cities still bid for mega-events despite their dubious benefits. Despite the common use of the term "mega-event," size is not the sole factor determining whether a sporting contest qualifies as a mega-event. The Olympic Games were one of four sets of Greek athletic contests, the other three being the Pythian, Nemean, and Isthmian Games. By the 19th century, the Olympic Games of ancient Greece had been forgotten by all but a few historians and archaeologists. The first modern Olympic Games, held in Athens in 1896, were a small affair, encompassing only 14 nations and fewer than 250 athletes.
