Governments intervene in the provision of a whole range of sporting activities stretching from grass-roots participation to international sporting events. This chapter attempts to explain why. In the case of participant sports it is believed that such activities are merit goods for which there are efficiency and equity considerations. Governments therefore attempt to prevent under-provision. In the case of international sporting success there is an element of public goods with a similar potential problem of under-provision. Governments, both local and national, provide subsidies in the form of aid for mounting bids or constructing stadiums in order to host international sporting events such as the Olympic Games and the World Cup. However, cost-benefit analyses of such events suggests that often the economic gains are much smaller than predicted.
KeywordsOlympic Game Competition Policy Professional Sport International Olympic Committee Football Club
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