Competition and monopolies in soccer

I thought the following dialogue about monopoly and competition from this 3Four3 podcast, with guest Ciara McCormack, was well said (around the 36 minute mark, emphasis added):

Host John Pranjic: The lack of competition, the lack of ideas being thrown into an arena, to let it fight it out and see which is best, that is what Canada lacks, that is what United States lacks, that is what Australia lacks, when it comes to soccer.

You get this one-size-fits-all attitude, from the top-down, that mindset alone is what kills the soccer environments in those three countries

Guest McCormack: There’s a reason in our societies, economically, that monopolies are frowned upon. It’s exactly the thing you are talking about. The lack of creativity.

I always liken it to, if I step on the field and I know I’m in the starting eleven every week — I can be good, I can be bad, I can sit and pick flowers the whole game and line [something] — and I know that I’m starting every week.

I’m not becoming better. People around me aren’t becoming better. They become stagnant.

Growing up in Canada, I’ll use my White Caps experience as an example. That was the only club team you could play for if you wanted a shot with the Canadian team.

The amount of power that gives the people in charge to treat the players what ever way they want, it just creates this awful culture.

When I was in Denmark, that would never have happened. You’re at a club and things aren’t going really good, then you go to another club.

Then another club starts with revolutionary ideas, that club rises to the top…

Exactly.

As I’ve mentioned before, we all have two powers: the power of voice and exit.

Pranjic and McCormack here describes negative consequences of not having a strong enough competition, or low power of exit, in a soccer federation.

These principles of voice and exit are true for all organizations from governments, private enterprises, schools, soccer federations and, as McCormack points out, teams.

It would be interesting to go deeper into how soccer federations are organized in other countries to compare to the U.S., Canada and Australia.

From my uneducated point of view, many seem to see their role more about fostering competition at all levels, rather than being in charge of competitions at levels.

For example, while U.S. Soccer seems focused on dictating the how many seats must be in stadiums and the minimum population sizes of team markets, England’s FA is more about ensuring that any team playing good soccer has a chance — no matter the size of their stadium or city.

I believe those in U.S. Soccer prioritize stability. That’s why they focus on stadium and market size. They think that will keep teams around, even when their results aren’t great.

I believe those in England’s FA prioritize the quality of soccer. It’s not that they don’t care about stability, but they believe stability comes from good soccer, not from the number of seats in the stadium.

The 5 And’s

Young goalkeepers often lose confidence when they let a goal in. It doesn’t help that their teammates often blame the goal on them.

To help them regain confidence and teach their teammates that goals against are rarely the sole fault of the keeper, I would explain the 5 And’s.

They would respond, confused, “Five what?”

“Five And’s. Let’s replay what led up to that goal.

Johnny lost the ball because nobody was open for a pass…

AND…

Johnny then dove in to try to win the ball back (poor tackling technique), getting beat easily giving up 20 yards of space…

AND…

The next two defenders, Mike and Jack, didn’t call the attacker, so both stepped in leaving another player on the other team open for a pass (lack of communication)…

AND…

Do you see where I’m going?  The next defender, Billy, took away the middle, instead of the line (basic defensive tactic to force the other team’s ball movement into traffic), allowing an easy pass down the line to an open winger…

AND…

the outside back, Seth, gave that winger too much time and space to serve a good ball in (not following basic defensive tactic to pressure the winger)…

AND…

The center back, Blaine, left a guy wide open to receive (ball watching) and go 1v1 with the goalie.

There were 5 And’s leading up to that goal. Each AND represents a mistake made by one or more field players.

Great if the keeper makes the save, but don’t expect it to happen every time. 1v1 against the goalie is a high percentage shot. It’s a big goal. The keeper won’t save all those.

So, as we’re learning this game, when the other team gets a scoring chance, ask yourself what you and your teammates could have done differently to prevent that chance.

Good and bad teams make lots of mistakes. The difference is that good teams don’t often make 4-5 mistakes in a row. They usually get it back under control after 1 or 2.

Getting better in soccer as a team means getting better at not letting those 5 AND’s happen.

The 5 And’s also apply to real life. Many bad things (and sometimes good things) result from cascading mistakes.

The sump pump in my neighbor’s house has a battery backup. One night, my neighbor happened to be on vacation AND we had an uncommonly high 5-6 inches of rain AND late on a Saturday night a car hit a power pole taking out power to our subdivision AND our subdivision does not yet have a backup feed for the power company to switch over to while they make repairs AND it took the power company over 13 hours to restore power AND that was long enough to drain the battery on the backup and let the sump well overflow into their basement.

My neighbor came home to soggy carpet and flood damage. Take away any of those AND’s and they probably would have avoided a flooded basement.

 

The source of emergent order

Robert Solow from this EconTalk podcast on Growth and the State of Economics:

We all know that a lot of the innovation occurs as a business process. I keep telling myself we also all know that a lot of innovation comes as a matter of dumb luck. You set out to solve problem A, and you fail totally to solve problem A, but you solve problem B that wasn’t in your head at all.

I’m not sure we ALL know that.

But, I do think that growth, innovation, improvement in the standard of living — whatever you call it — depends on how good we are at recognizing that we solved problem B.

I’ve been a part of many organizations that end up solving problem B, but ignore it because they are fixated on solving problem A.

I think this happens with R&D efforts in government and other bureaucratic organizations. They get so hung up on their preferred solution (e.g. solar power or wind power) that they ignore discoveries that don’t fall into their pre-selected, politically-correct categories.

How well a system allows the solution to problem B to propagate, I believe, is related to that system’s long-term viability.

Signals v Causes: Poverty

From the Introduction of the William Easterly’s book, The Tyranny of Experts: Economists, Dictators, and the Forgotten Rights of the Poor:
:

The technical problems of the poor (and the absence of technical solutions for those problems) are a symptom of poverty, not a cause of poverty. This book argues that the cause of poverty is the absence of political and economic rights, the absence of a free political and economic system that would find the technical solutions to the poor’s problems. The dictator whom the experts expect will accomplish the technical fixes to the technical problems is not the solution; he is the problem.

Think of technical problems as problems like not having medicine, food or the internet and technical solutions as providing medicine, food and the internet.

I’m looking forward to reading the rest of the book. I heard about it from this EconTalk episode with William Easterly and that discussion is worth a listen.

Feedback Matters in Customer Service

This EconTalk podcast features a panel discussion on the future of work, featuring Andrew McAfee, Megan McArdle and Lee Ohanian.

Host, Russ Roberts, makes a good point about 29 minutes into the podcast. They are discussing how people differ from artificial intelligence. McArdle points out that there is value in charm. McAfee isn’t so sure. He says:

But think of your last 10 service interactions with another human being. How many of them left you with that warm, chamomile tea feeling?

McArdle say most of them. McAfee responds:

Oh, come on, did you walk through a sea of pleasant experiences in the airports on your way here? If so, I want to travel with you. [Or] When you call up Comcast, when you go–

Roberts points out that these are outliers:

You’ve picked the example of the places in America where there is very little competition due to regulation and government monopoly.

Good point. Not all customer service experiences are great, but certainly the ones from the companies that compete for your business are better than those that don’t. Everybody dreads going to the DMV. Most people are okay with heading to McDonald’s.

Failing sucks, get over it

The Wall Street Journal published an adaptation of Admiral William McRaven’s commencement address to the University of Texas about life lessons learned at Navy SEAL Training that is worth a read.

Here are a couple prescient lessons.

Get over failing:

Several times a week, the instructors would line up the class and do a uniform inspection. It was exceptionally thorough. Your hat had to be perfectly starched, your uniform immaculately pressed and your belt buckle shiny and void of any smudges.

But it seemed that no matter how much effort you put into starching your hat, or pressing your uniform or polishing your belt buckle, it just wasn’t good enough. The instructors would find “something” wrong.

For failing the uniform inspection, the student had to run, fully clothed, into the surfzone and then, wet from head to toe, roll around on the beach until every part of your body was covered with sand. The effect was known as a “sugar cookie.” You stayed in that uniform the rest of the day—cold, wet and sandy.

There were many students who just couldn’t accept the fact that all their effort was in vain. That no matter how hard they tried to get the uniform right, it was unappreciated.

Those students didn’t make it through training. Those students didn’t understand the purpose of the drill. You were never going to succeed. You were never going to have a perfect uniform.

Sometimes, no matter how well you prepare or how well you perform, you still end up as a sugar cookie. It’s just the way life is sometimes.

If you want to change the world, get over being a sugar cookie and keep moving forward.

More on failing, don’t afraid of “the circus”, in fact it’s how you respond to failure that may build your success in the future:

Every day during training you were challenged with multiple physical events. Long runs, long swims, obstacle courses, hours of calisthenics—something designed to test your mettle.

Every event had standards, times that you had to meet. If you failed to meet those standards, your name was posted on a list and at the end of the day those on the list were invited to a “circus.”

A circus was two hours of additional calisthenics designed to wear you down, to break your spirit, to force you to quit. No one wanted a circus. A circus meant that for that day you didn’t measure up. A circus meant more fatigue, and more fatigue meant that the following day would be more difficult—and more circuses were likely.

But at some time during SEAL training, everyone—everyone—made the circus list. Yet an interesting thing happened to those who were constantly on the list. Over time those students, who did two hours of extra calisthenics, got stronger and stronger. The pain of the circuses built inner strength—built physical resiliency.

Life is filled with circuses. You will fail. You will likely fail often. It will be painful. It will be discouraging. At times it will test you to your very core.

But if you want to change the world, don’t be afraid of the circuses.

Enhanced by Zemanta

Don’t get caught in the justice trap

I enjoyed this post from David Henderson on EconLog about why businesses hire employees and that it is worthwhile to avoid the justice trap.

Henderson quotes good advice from Jeffrey Tucker:

Sincere apologies and genuine admissions of error and wrongdoing are the rarest things in this world. There is no point at all in demanding apologies or in becoming resentful when they fail to appear. Just move on. Neither should you expect to always be rewarded for being right. On the contrary, people will often resent you and try to take you down.

How do you deal with this problem? Don’t get frustrated. Don’t seek justice. Accept the reality for what it is. If a job isn’t working out, move on. If you get fired, don’t seek vengeance. Anger and resentment accomplish absolutely nothing. Keep your eye on the goal of personal and professional advancement, and think of anything that interrupts your path as a diversion and a distraction.

And perhaps a bit more powerful from Walter Oi regarding Japanese internment camps in World War II:

…the Japanese-Americans were treated unjustly, but that the best thing to do for them was to move on and not create a new government program.

I agree. It is very easy to get caught in the justice trap and dwell on how you have been wronged, but that isn’t the least bit productive. Get over it.