Misbehavior vs market efficiency in the context of international football a special view on academy players

Abstract

This paper tackles the reality of academy players in the context of the international football world. A set of behavioral and non-behavior phenomena are studied to understand if clubs are biased towards buying players in the market rather than betting in their own players. A mathematical analysis is conducted to analyzeboththenon-academy and academyplayer’s variation of the market value in a window of 1 year and conclude if indeed there is anunderestimation towards academy players.This paper allows for a financial study on football players valuation in a short-term window of timeand the consequent return to clubs.