ABSTRACT
Corruption in sport is hidden action which distorts the allocation of resources away from competitive outcomes. Sport can be corrupted by those who are so determined to win that they take performance-enhancing drugs and by those who agree ‘to cheat to lose’ by agreeing to fix results. Competition corruption in the form of match-fixing takes two major forms, one intrinsic to the competition itself (relating to draft positions, promotion/relegation, deceiving the handicapper) and the other involving external influences, such as bookmakers or gamblers seeking an edge in the betting market. Those sportspersons considering malfeasance undertake a cost-benefit analysis to determine which course of action promises the greatest personal net utility. Sport is bad for the environment. At best, sport participation and spectatorship can be neutral, at worst it can be devastating. Economic self-interest has now forced many clubs, leagues, and organisations to adopt environmentally friendly policies which lead to more efficient use of resources and an enhanced public image. When economists talk of discrimination in professional sport, they are concerned with unequal salaries for equal work and unequal access to the sport and positions within it. Discrimination in elite sport is generally seen as economically irrational, as it deprives teams of potentially better players. At the grassroots level, members of sports clubs prefer to play and socialise with like-minded individuals, but when there is an economic cost to this, behaviours can change.
