What can economics learn from sport?

In this podcast episode, Tim Harford and Ignacio Palacios-Huerta explore the fascinating link between sports and economics. They discuss important concepts like loss aversion, discrimination, and game theory, using relatable sports examples such as golf putting and baseball strategies. These analogies help illustrate how economic theories play out in real life, showing that our decision-making is shaped by how we perceive gains and losses, past biases, and the unpredictability of strategies. The episode concludes with a compelling insight: skilled penalty takers in football effectively use these economic principles, highlighting the valuable lessons we can learn from analyzing sports data.