Beauty, preferences and choice exemplified in the sports market

Hannah Josepha Rachel Altman, Morris Altman, Benno Torgler, Stephen Whyte

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    Beauty has been used as a fast and frugal heuristic, and therefore an important determinant of choice, as highlighted in research by Hamermesh. In a world of asymmetric information, beauty represents a proxy for objective characteristics or an object of desire, according to an individual’s preferences. A correlate of beauty, sexiness, has been used in sports to choose trainers or even to select the athletes expected to perform best, with people paying a premium for this beauty or sexiness. We argue that beauty can be a good or bad heuristic depending on the objective relationship between beauty and what it proxies. When it is a bad heuristic, it generates sub-optimal outcomes for sports organizations. We discuss the conditions under which the beauty or sexiness heuristic generates sub-optimal outcomes, why rational agents choose such a heuristic, and the conditions under which bad heuristics are sustainable. We also discuss this heuristic and the beauty premium in the context of Becker’s economic theory of discrimination, wherein rational decision-makers trade off material considerations for the utility gained by contracting beautiful and sexy individuals. The latter has implications for the economic sustainability of an organization.
    Original languageEnglish
    Title of host publicationBehavioural sports economics
    Subtitle of host publicationA research companion
    EditorsHannah Josepha Rachel Altman, Morris Altman
    PublisherRoutledge
    Chapter11
    Pages201-221
    Number of pages21
    Edition1st
    ISBN (Electronic)9781003080824
    ISBN (Print)9780367531843
    DOIs
    Publication statusPublished - 20 Dec 2021

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