Cognitive biases and distorted decision making that prevent rational and efficient sports management - Cross-cultural difference between MLB and NPB

Abstract

This study explored and summarized cognitive biases and distorted decision making that prevent rational and efficient sports management in markets of professional athletes, in particular, baseball. In addition to this, cross-cultural difference between MLB and NPB (Nippon Professional Baseball) was pointed out to avoid inefficiencies in baseball markets and reach rational decision making in sports management. First, a variety of cognitive biases and distorted decision making commonly observed in both MLB and NPB were identified. It was demonstrated that cognitive biases and distorted decision making in home field advantage, draft picks, team organization, or judgment or feeling about the game itself such as momentum shift were ubiquitous in both professional baseball leagues. Throughout the comparative study of MLB and NPB in particular paying emphasis on the concentration (MLB) and the spiritualism (group harmony) (NPB), it is suggested that the cross-cultural difference potentially leads to different decision making in baseball management such as the contracting money, draft picks, or contraction with no promising players. Cross-cultural difference between MLB and NPB is also a cause to give rise to cognitive biases or behavior in sports management or decision making. Until now, the biases that stem from cross-cultural differences have not been fully explored and identified. The biases in decision making and behavior in draft picks or making a continued contract with players peculiar to NPB and not observed in MLB have been summarized in this study.