Friday, July 30, 2010

Football & Finance

In sport as in life, regulators are always a step or two behind the times. The brouhaha about the disallowed English goal against the Germans seems to have forced even the bureaucrats at FIFA to agree to look into introducing some technology. This piece by Richard Thaler brings out a few parallels between the worlds of super sport and high finance. Considering how out of touch with everyday reality both these universes are, they have a lot in common.

PS: If FIFA needs an example one can only point to a cricket match in Calcutta much before video replays were available to umpires. Azhar was declared run-out, while everyone on the field was helpfully shown multiple slow-motion replays indicating otherwise. The good natured Bengali crowd promptly rioted and torched a section of the stadium.

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