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The international competition effect on the player transfer market: a special view on the Big5 vs rest of the world leagues

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This paper tries to examine the degree to which CEOs are influenced by cognitive biases applied to the context of the international football industry. To do so, the research will concentrate on whether transfers based on player performance after international competitions like the World Cup are over valued. A set of behavioural and non-behavioural phenomena are covered to provide background to the investigation. A sample was collected covering data on the last three international competitions and preceding domestic competitions and a mathematical analysis was conducted to draw the key conclusions of the paper. It was found that clubs behave in a manner that is compatible with rational expectations. This paper facilitates a financial study on the rationale behind the decisions of football clubs in the market for footballers.

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International football Behavioral biases Transfer market

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Licença CC