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Game Theory in Sports

In August 2010 a University of Miami football booster named Nevin Shapiro claimed that he had violated NCAA rules by providing cash as well as other goods to former Miami football athletes. Nearly a year later, while conducting an interview with Yahoo Sports, Shapiro went on to reveal the names of certain players that received benefits from him. The investigation into this case is currently ongoing, and when a conclusion is finally reached, if the allegations are indeed declared true, then the Miami football program could perhaps be gone forever.

Shapiro was faced with a tough decision when determining whether or not to reveal the information surrounding the illegal benefits that he provided to players. When Shapiro did actually go ahead and give things to players such as cars, tickets to various entertainment events, as well as VIP entrances to clubs and other exclusive events, he and the players virtually signed a contract in which the two parties agreed that they would not share any news of their transactions. For if news broke about Shapiro’s interaction with the players, there would obviously be harsh consequences for both sides.

The situation here can be assessed in terms of Game Theory. Each player (the actual football player and Shapiro) has two options to choose from: he can reveal the information about these secret, illegal exchanges, or he can keep the whole deal private. Each player understands that if both parties keep the information private, they both get the highest payback. If one party discloses the situation while the other keeps it private, the one who discloses information receives a higher payback than the other, for he may be looked upon as a righteous man for turning a wrong into a right. On the other hand, if both parties reveal the situation, they receive equal payback, however this payback is not as high as if each party kept the whole thing a secret. Ultimately, Shapiro chose to disclose the situation to the media, and therefore put the Miami football program in huge jeopardy. It is easy to see how Game Theory can be applied to everyday situations, including situations that arise in the world of sports.

http://espn.go.com/college-football/story/_/id/6872043/former-miami-hurricanes-disappointed-allegations

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