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

Barriers to Entry and Global Sports Organizations

 

An earlier post “Sports Organizations and Structures” presented an outline on the governance structures in global sports. Sports might be local or regional or national or global but what makes them a formal move towards being recognised as sports is a structure that underpins their governance. As the earlier post pointed out, the governance of international sports is carried out by an organization that is made of national bodies. While there are organizations that do not have a national character, they are usually not part of the mainstream. The only exception seems to be World Triathlon Corporation that organizes the IronMan races. They are signatories to Anti Doping Code and they have their own well recognized tour and circuit. Their relationship with the International Triathlon Union has been of blowing hot and cold. In the recent times, the reinvention of GAISF following the aftermath of the Vizier years, the stepping stone to global recognition and thus a possible inclusion in the Olympics has been the membership of GAISF. This membership is sought by many organizations as they seek funding and inclusion in their own national bodies. Yet the membership criteria and the pathway remains a sort of puzzle.

 

While there were views of being arbitrary or opaque, in recent years there were attempts to streamline in and bring in the concept of observership. The applications were to be given the status of observers at GAISF which then would be a stepping stone or a hand-holding journey towards a full membership. Within a short time, it managed to have quite a few observers though only two sports Arm-Wrestling and Teqball have managed to progress to full membership. Incidentally, arm-wrestling had a long history, teqball is a fairly recent sport. In fact, the journey of teqball from its inception in the early part of the current decade to graduating into full membership of global sports body is an interesting event that needs to be decoded at some point of time. It remains to be observed whether it was the political lobbying or there existed a genuine interest in the sport that catapulted it to the top. In fact, there are many sports with rich and diverse history that are languishing to get the membership. While some might like lawn bowls have an independent identity in the Commonwealth Games and thus can be away from GAISF, many others are not so fortunate.

 

Consider an interesting question. Parkour has attracted a lot of attention and there is a clamour for it to emerge as a formal sport. There are no doubt serious differences in the parkour community whether it should consider it as a sport or evolve into a competitive activity or remain as a non-competitive recreation as it exists to many today. While there are rival bodies which have been seeking membership of GAISF, they have found a hurdle in the international gymnastics federation (FIG). Meanwhile, FIG itself has come out with its parkour events, something trialled in the recent World Urban Games. FIG remains opposed to parkour as a separate entity with ostensible reason of appropriating it, something akin to International Skiing Federation appropriating snow-boarding some years back. Yet, FIG did not have serious objections to pole-sports (Sports version of pole-dancing- once associated with eroticism) while did oppose at some length to cheer-leading. Cheer leading and pole sports and in fact even baton twirling and majorette have found themselves at the receiving end of international dance sports federation. While competitive cheer navigated it relatively successfully others are yet to. The reasons seem easier to decipher. It is about the possible inclusion in the Olympics. Cheer might get a shot at 2028 but unlikely to gymnastics in the long run while it does pose a threat to dance sports which interestingly is debuting in 2024 through breaking- a form it has appropriated from the others. What FIG would fear is parkour trying to threaten gymnastics rather than cheer or pole-sports. The latter is unlikely to make a cut to the Olympics anytime in the near future but it does pose some threat to dance-sports. Therefore, dance-sports might not want to share the limelight with pole or for that matter baton-twirling.

 

There is another celebrated case with mixed martial arts (MMA). In recent times, MMA has perhaps achieved the distinction of most popular combat sport and attracts huge televised audiences. In fact, professional boxing, a big draw in the earlier years is giving way to MMA. MMA has high aspirations of being part of the Olympics and they seek to be a member of GAISF. Yet, every stage finds them being rejected. They have applied numerous occasions yet the strong backlash from the existing martial sports bodies in the federation have ensured their application being rejected. It is believed that the European Judo Federation is behind their rejections. There has been talk of approaching Council of Arbitration of Sport but nevertheless, it has not proceeded with full speed. The answer to this objection lies in the nature of competition. To many sports like judo or taekwondo, Olympics is the ultimate pinnacle. Minus the Olympics, they are unlikely to survive. The entry of MMA precisely threatens their existence. To judo, taekwondo, or even aspirants like wushu, MMA would end their hopes of being a star Olympics sports. MMA can survive without Olympics but not possible for other sports. Hence in their existential battle, they keep posting hurdles at every stage. The rules of membership for GAISF give a virtual veto power to the existing members. This comes in handy to tackle emergent popular sports like MMA. In fact even lesser known sports like rafting or practical shooting have to overcome serious hurdles to get an entry as observers. Another instance is of rugby league which has faced serious opposition from rugby union, its rival which has grown in miles over the century since they split apart.

 

As one examines these cases, it is evident that the degree of threat the existing members perceive determine their stand against the entry of any prospective new members. In most instances, the existing members would not allow a competitor from making an entry. That holds good for any activity in this world. Yet, the organizing structure of sports has evolved such a way that first mover advantage is considerable at every stage. Unless something radical happens, the struggle for newer versions is going to be difficult.

 

 

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