Riding High { Success in Sports and the Rise of Doping Cultures Holger Strulik∗ Leibniz Universit¨atHannover, Discussion Paper No. 472 ISSN 0949-9962 First Version: August 2007. This Version: January 2010 Abstract. This article develops a socio-economic model that analyzes the doping decision of professional athletes. In their evaluation of whether to use performance enhancing drugs athletes consider not only costs and benefits (through rank improvement) but also approval by their fellow athletes. Peer- group approval is modeled as a lagged endogenous variable depending on the share of doping athletes in the history of a sport. This way, the model can explain an equilibrium of high incidence of doping as a \doping culture". Besides the comparative statics of the equilibrium (how can a doping culture be eliminated?) the article also investigates how the doping decision is affected by standards set by the respective leader in a sport, e.g. Olympic qualification marks, and by the taste for victory resulting from the disproportionate public veneration of winners. Keywords: sport, doping, approval, social dynamics, rank loss aversion, taste for victory, superheroes. JEL: A13, D71, K40, L83, M50. ∗ Department of Economics, Brown University, Providence, RI 02912, USA, email: holger
[email protected] and University of Hannover, Wirtschaftswissenschaftliche Fakultaet, 30167 Hannover, Germany; email:
[email protected] hannover.de. I would like to thank Karl Dietrich, Vilen Lipatov, Luca Rebeggiani, Stefanie Strulik, an editor of this journal, and two anonymous referees for useful comments. I never cheated. (Jan Ullrich) So I did it, but I didn't feel totally guilty about it because everybody else seemed to be doing it.