Műhelytanulmányok

László Csató, Alex Krumer

MKE-WP-39300

The Swiss-system is an increasingly popular competition format as it provides a favourable trade-off between the number of matches and ranking accuracy. However, there is no empirical study on the potential unfairness of Swiss-system chess tournaments caused by the odd number of rounds played. To analyse this issue, our paper compares the number of points scored in the tournament between players who played one game more with the white pieces and players who played one game less with the white pieces. Using data from 28 highly prestigious competitions, we find that players with an extra white game score significantly more points. In particular, the advantage exceeds the value of a draw in the four Grand Swiss tournaments. A potential solution to this unfairness could be organising Swiss-system chess tournaments with an even number of rounds, and guaranteeing a balanced colour assignment for all players using a recently proposed pairing mechanism.

László Csató, Martin Becker, Karel Devriesere, Dries Goossens

MKE-WP-39297

The group stage of a sports tournament is often made more appealing by introducing additional constraints in the group draw that promote an attractive and balanced group composition. For example, the number of intra-regional group matches is minimised in several World Cups. However, under such constraints, the traditional draw procedure may become non-uniform, meaning that the feasible allocations of the teams into groups are not equally likely to occur. Our paper quantifies this non-uniformity of the 2026 FIFA World Cup draw for the official draw procedure, as well as for 47 reasonable alternatives implied by all permutations of the four pots and two group labelling policies. We show why simulating with a recursive backtracking algorithm is intractable, and propose a workable implementation using integer programming. The official draw mechanism is found to be optimal based on four measures of non-uniformity. Nonetheless, non-uniformity can be more than halved if the organiser aims to treat the best teams drawn from the first pot equally.

László Csató, András Gyimesi

MKE-WP-39294

Existing match classification models in the tournament design literature have two major limitations: a contestant is considered indifferent only if uncertain future results do never affect its prize, and competitive matches are not distinguished with respect to the incentives of the contestants. We propose a probabilistic framework to address both issues. For each match, our approach relies on simulating all other matches played simultaneously or later to compute the qualifying probabilities under the three main outcomes (win, draw, loss), which allows the classification of each match into six different categories. The suggested model is applied to the previous group stage and the new incomplete round-robin league, introduced in the 2024/25 season of UEFA club competitions. An incomplete round-robin tournament is found to contain fewer stakeless matches where both contestants are indifferent, and substantially more matches where both contestants should play offensively. However, the robustly higher proportion of potentially collusive matches can threaten with serious scandals.

Penalty shootouts play an important role in the knockout stage of major football tournaments, especially since the 2021/22 season, when the Union of European Football Associations (UEFA) scrapped the away goals rule in its club competitions. Inspired by this rule change, our paper examines whether the outcome of a penalty shootout can be predicted in UEFA club competitions. Based on all shootouts between 2000 and 2025, we find no evidence for the effect of the kicking order, the field of the match, or psychological momentum. In contrast to previous results, stronger teams, defined first by Elo ratings, do not perform better than their weaker opponents. Consequently, penalty shootouts seem to be close to a coin toss in top European club football.

Hubert János Kiss, Alfonso Rosa-García

MKE-WP-39230

We study whether political regime type is associated with public attitudes toward artificial intelligence (AI). Using nationally representative surveys from 47 countries (2024–2025) and the EIU Democracy Index as our primary measure of regime quality, we relate democracy to three outcomes: AI acceptance, perceived trustworthiness and trust in AI. We find a negative association between democracy and all three outcomes that attenuates yet persists after adding country-level sociodemographics and AI literacy. Results are robust to alternative regime measures and to replacing contemporaneous democracy with lagged democracy measured prior to the AI boom. They also hold when accounting for cultural differences using an individualism–collectivism index. Finally, we show that democracy partly accounts for the AI acceptance premium recently documented in emerging countries.

Roberto Burguet and József Sákovics

MKE-WP-39220

We study lobbying as a seller's ploy to affect the buyer's learning process about the value of a singular good that he wishes to procure. In particular, we argue that a lobbying seller strategically distorts "soft" rather than private information. Our innovation is to model this as the seller "jamming" the buyer's signal -- not just by shifting its mean, but -- by skewing (increasing the third moment of) its distribution. An unobserved marginal increase in lobbying effort expands demand, thus, unless too expensive, the seller always lobbies, no matter how suspicious the buyer is. Crucially, even when correctly anticipated (in equilibrium), lobbying increases the price elasticity of the buyer's demand. This leads to a lower equilibrium price and increased efficiency. In the (skew-)normal learning model, in equilibrium the seller gains, the buyer loses as a result of lobbying. Nonetheless, the information gleaned during the process keeps the buyer from refusing to engage in it.

Adam Szeidl, Ferenc Szucs

MKE-WP-39212

We model populism as the dissemination of a false “alternative reality”, according to which the intellectual elite conspires against the populist for purely ideological reasons. If enough voters are receptive to it, this alternative reality—by discrediting the elite’s truthful message— reduces political accountability. Elite criticism, because it is more consistent with the alternative reality, strengthens receptive voters’ support for the populist. Alternative realities are endogenously conspiratorial to resist evidence better. Populists, to leverage or strengthen beliefs in the alternative reality, enact harmful policies that may disproportionately harm the non-elite. These results explain previously unexplained facts about populism.

This paper investigates whether adolescents’ core self-evaluation (CSE), a broad personality construct capturing individuals’ appraisal of their self-worth and capabilities, predicts interpersonal trust decades later. Using nationally representative longitudinal data from the 1970 British Cohort Study, we construct CSE measures from self-esteem, locus of control, and emotional stability at age 16 and examine their relationship with trust reported at ages 34, 42, 46, and 50. We find that higher adolescent CSE is consistently and positively associated with greater trust in others later in life. Each component of CSE independently predicts trust, and the composite index shows robust associations even after controlling for demographic background, cognitive skills, and early mental health. The estimated associations are comparable in magnitude to those between trust and cognitive ability. They are stable over time and are not explained by selection to the sample, educational attainment, labor market success, or family formation. Importantly, we find that the relative importance of CSE components varies by adolescent mental health: locus of control is more predictive among individuals with better mental health, while emotional stability plays a stronger role among those with elevated depressive symptoms. These findings underscore the long-term social relevance of core self-evaluation and highlight its importance as a psychological antecedent of trust.

Pető Rita, Balázs Reizer

MKE-WP-39204

How does foreign direct investment impact wages and the task content of jobs? Using linked employer-employee data from Hungary and an event study approach we show that FDI increases the returns to abstract tasks, while it does not affect the returns to routine and face-to-face tasks. This finding appears to be driven by skill-biased changes in technology, as acquired firms innovate more with their foreign partners, import more machines and improve product quality. These suggest that FDI-induced technological change is an important driver of growing inequality in developing countries.

This paper examines how foreign direct investment (FDI) influences the gender wage gap, using matched employer-employee data from Hungary between 2003 and 2017. I find that foreign-owned firms exhibit a 4 percentage points larger within-firm gender wage gap compared to domestic firms, even after accounting for worker- and firm-level selection. This gap persists even after foreign capital withdraws, suggesting a lasting structural imprint. Furthermore, the results highlight the role of cultural norms: subsidiaries of companies from countries with more favorable economic opportunities for women show significantly smaller gender disparities. Greater wage-setting flexibility is also associated with a wider gender wage gap, especially among new hires. Overall, the study demonstrates that foreign ownership not only affects wage structures through economic channels but also transmits cultural norms that shape gender inequality in the labor market.

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