Psychological Pressure and Team Performance

Team production is increasingly important for economic outcomes, yet the factors driving team performance remain poorly understood. This paper examines the influence of psychological factors on team performance using data from the top divisions of the five major European football leagues, with a particular focus on the phenomenon of home advantage. Home advantage has been widely studied, and research has reached a point where further progress is challenging. This study offers a modest but insightful contribution by distinguishing between goals and expected goals to separate the creation of scoring opportunities from the conversion of those chances into actual goals, which reflects individual performance. The analysis shows that home teams not only generate more scoring chances but also convert them into goals more efficiently. In the absence of a stadium crowd, home advantages in goals and expected goals are substantially reduced, and the home advantage in the conversion of expected goals into actual goals is virtually absent. These findings suggest that psychological factors can be stimulating and have a positive effect on productivity, rather than workers choking under pressure and thereby decreasing their productivity.