TITLE:
Role of Regression to the Mean and Loss Aversion in Brazilian Soccer Club Performance
AUTHORS:
Leon Esquierro, Sergio Da Silva
KEYWORDS:
Soccer, Regression to the Mean, Loss Aversion, Luck
JOURNAL NAME:
Open Access Library Journal,
Vol.6 No.8,
August
2,
2019
ABSTRACT: Causal explanations are often favored to explain club performance in soccer tournaments, and the role that luck plays is usually neglected. Here, we consider three recent seasons of the first-division Brazilian soccer league to examine the relative importance to club success of loss aversion (a causal explanation) and regression to the mean (luck). We find that club performance depends on both, and quantify this finding.