Second Place Is The First Loser: Strategy Over Speed

Send us Fan MailThe ancient tradition of Il Palio in Siena showcases a complex system of strategic corruption, neighborhood rivalries, and high-stakes horse racing that has endured for centuries. This 90-second race around Siena's central piazza involves extensive bribery, intense negotiations, and centuries-old vendettas that make speed secondary to political maneuvering.• Horse assignments determined by lottery prevent wealthy neighborhoods from buying fastest horses but create opportunities for strategic corruption• Jockeys accept bribes up to €80,000 to impede rivals or assist allies, with reputation determining future employment• The "rincorsa" (starter horse) wields extraordinary power in determining when the race begins• Enforcement of bribe agreements relies on reputation, trust, and fear rather than formal contracts• Coming in second place is considered worse than finishing last, leading to public ridicule that can last generations• Neighborhood identities and rivalries date back to medieval times, with memories of betrayals lasting decadesBook o'da'week:  Okay, it's a film.  But it's great!Book o da week:  Il Palio documentary, 2015. Cosimo Spender, director and writer. https://www.imdb.com/title/tt3669520/ If you enjoy learning about the economics of unusual institutions, join us next week for the third installment of our Adam Smith podcast series with Adam Smith Works.If you have questions or comments, or want to suggest a future topic, email the show at [email protected] !You can follow Mike Munger on Twitter at @mungowitz