Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Economics of Sports Scoring and Field Measurements


Two elements stand out in playing and watching sports. First, the playing dimensions and second the scoring system. The former includes the dimensions of the field, nature and specifications of the equipment used, dress code etc. The latter, vital for the very landscape of sports being competitive, defines the process of determination of the winner.

A glance at playing dimensions indicate cricket pitch to be of 22 yards, soccer field dimensions at international level being around 100*70 metres or so etc. Similarly we see athletics events being raced over 100 m, 200 m etc. Ditto for swimming contests. The scoring system for sports like tennis is 6 games to a set and best of three or five sets as the case may be. Table tennis, badminton etc similarly are played in sets but rather games, they are played to certain points in each set. Golf is about achieving the target with minimum shots. Shooting is target sport with points offered based on the target hit.

While soaking the emotions evoked through playing or watching sports, it might be time to wonder a little bit what determines the playing dimensions or the scoring system. Many dimensions have existed for decades, scoring systems do keep changing in some sports though anchored to the original target. A fruitful dissection of these puzzles existed perhaps long enough to get noticed or wondered might unearth some interesting things at play.

To a theorist, perhaps a refuge might exist in economics. Economics might seem abstract, yet over the years has morphed into analytical instrument to decode day to day realities. To decipher economic logic of sports field dimensions or sports scoring systems, we delve into concept termed arbitrary coherence.

Arbitrary coherence was introduced by economist Dan Ariely especially in relation to understanding price mechanism. In Ariely’s words, “The basic idea of arbitrary coherence is this: Although initial prices can be "arbitrary," once those prices are established in our minds, they will shape not only present prices but also future ones (thus making them "coherent")”. While research is being pursued in the price modelling, we will apply the same model in understanding the above puzzles.

The premise of arbitrary coherence in simple. The initial idea might appear arbitrary. Yet it anchors the processes downstream. In other words, once the idea is rooted, every other ancillary step is tied to the root. There is a method to madness. What appears arbitrary might actually be setting a series of thoughts of coherence.

Consider cricket pitch of 22 yards. The distance was rooted to imperial units of measurement. One tenth of a furlong was a chain which was equivalent to 22 yards. Hence the heuristic attribute which was perhaps easiest to anchor was one chain ( 22 yards) and thus the cricket pitch distance was framed. The other attributes of the cricket field measurement would have be anchored to this ‘arbitrary’ figure. We would find similar solutions to puzzles posed by size of soccer or hockey or basketball field.

 In athletics, there is an event 110 meter hurdles for men. Incidentally for women the distance is 100 metres. One might wonder the odd 110 metres relative to almost every other distance in athletics is rounded off. The mystery lies in men having to cross ten hurdles which meant some extra cushion to the original 100 yards. The cushion perhaps was rounded to 20 yards making the distance 120 yards. When converted to metric units it became 110 metres and for historical reasons has continued so. Again some again of coherent path to what prima facie seems arbitrary setting.

For marathon the distance was anchored to the Greek times to  the fabled run of the Greek soldier Pheidippides, a messenger from the Battle of Marathon to Athens, who reported the victory and the extra 195 metres was designed to finish in front of Royal Box in London, 1908 and has continued so so since then. From marathon, arbitrary gave way to coherence in terms of designing half marathon etc. Every distance in athletic events is perhaps an outcome of anchoring perhaps arbitrary but nevertheless some coherence in the way it evolves from 100 metres sprint to 10000 metres race.  Similar principle perhaps applies in designing the swimming or skiing distances.

Round numbers smoothen the way for coherent follow up. Shooting scores revolve around a bulls eye score of ten (for all that matter it could have been 50 or 100 or 25 or 33.5 etc) which seemed convenient. Other scores in decreasing order evolved from this initial setting. The same modus operandi spilled over to sports from archery to axe throwing.

In golf, the mystery of 18 holes was linked to decision on oldest St. Andrews golf course only to be rationalized across the world spread over decades and now spilled over to mini golf, foot golf etc.

Penalties levied in sports like canoe slalom, equestrian jumping, dressage, etc, the initial anchor was convenient arbitrary figure which with passage of time and learning curve evolved into a set of coherent rules and practices. The principles of points and scoring in subjective evaluation sports like gymnastics, diving, competitive cheer, and figure skating would follow suit with initial root in arbitrary convenient point score morphing set of coherent patterns.

What the above examples demonstrate is the presence of arbitrary anchor and subsequent evolution of coherent mechanism of sports scoring and field dimensions. The unique intricacies of sports scoring or field measures incorporate economics at least sub consciuosly is an eye-opener. Next time when one plays or watches sports action, do keep underlying economics in mind!



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