Oswald Jaskolla Software Development

According to Wikipedia,

“Match fixing or game fixing in organized sports occurs when a match is played to a completely or partially pre-determined result.”

Match fixing is sometimes done by the players (like in the Black Sox Scandal), sometimes by the referee (like in the Bundesliga scandal of 2005). Let me elaborate on the role of the referee.

The referee in a soccer match has multiple responsibilities:

1. The referee determines the score of the game by awarding goals to the teams.
2. The referee ensures that the teams behave in a sportsmanlike manner.
3. The referee conducts the game according to his observations during play.

You can compare the role of the referee to that of a manager:

1. The manager must ensure a favorable stock quote of the company.
2. The manager must manage human resources and ensure their productivity.
3. The manager must decide based on the goals of the company.

All pretty straight forward. Why should a referee not be allowed to place bets on the games he conducts? Because this will tempt him to not conduct the game according to his observations during play, but according to his bet. Thereby the referee will not implement item 3.

Some questions to think about:

1. What is the economic equivalent of a bet?
2. Why is a manager allowed to bet on the performance of the company he runs?