Finance Decisions in Sports

1.5 Credits · Level: Undergraduate

Standard economic theory assumes that participants are rational agents who prioritize profit maximization. However, the world of sports is unique. Individuals within the sports world can operate with high emotional sentiment and often face unique incentives which can lead to different outcomes not supported by traditional financial theory. The goal of this class is to examine decisions that individuals in the sports world face, understand what standard financial theory suggests the rational decisions should be, and then examine why the observed decisions are similar to or different than what standard theory suggests. Students will be introduced to basic finance theory, behavioral finance concepts, and tools of game theory to better understand financial decision making in sports. Class is expected to be a mix of lecture and discussion. Students are expected to complete a pre class assignment ahead of each class to help them be prepared for the course discussion.