Download or read book Revenue Sharing and Competitive Balance in a Dynamic Contest Model written by Martin Grossmann and published by . This book was released on 2009 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a dynamic model of talent investments in a team sports league with an infinite time horizon. We show that the clubs' investment decisions and the effects of revenue sharing on competitive balance depend on the following three factors: (i) the cost function of talent investments, (ii) the clubs' market sizes, and (iii) the initial endowments of talent stock. We analyze how these factors interact in the transition to the steady state as well as in the steady state itself.

Download or read book Contest Theory and Its Applications in Sports written by Helmut M. Dietl and published by . This book was released on 2011 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper outlines how the theory of contests is applied to professional team sports leagues. In the first part, we present the traditional Tullock contest and explain some basic properties of the equilibrium. We will then extend this static contest to a two-period model in order to analyze dynamic aspects of contests. In the second part, we will present applications of contest theory in sports. In particular, we will show how the Tullock framework is applied to models of team sports leagues. For this purpose, we will first explain the value creation process in team sports leagues and show how club revenues are related to the contest success function. Then, we present some basic modeling issues; for instance, we show how the assumption of flexible vs. fixed talent supply depends on the league under consideration and how it influences the equilibria. Furthermore, we explicate the effect of revenue sharing on competitive balance in the different models. Then we address the relationship between competitive balance and social welfare. Finally, we illustrate why many clubs tend to "overinvest" in playing talent in many team sports leagues.

Download or read book Competitive Balance and Revenue Sharing in Sports Leagues with Utility maximizing Teams written by Helmut Dietl and published by . This book was released on 2009 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Revenue Sharing Competitive Balance and the Conzest Success Function written by Marco Runkel and published by . This book was released on 2008 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book League revenue Sharing and Competitive Balance written by Ross Booth and published by . This book was released on 2003 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Competitive Balance and Revenue Sharing when Rich Clubs Have Poor Teams written by Stefan Kesenne and published by . This book was released on 2003 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Revenue Sharing and Competitive Balance in Professional Team Sports written by Stefan Késenne and published by . This book was released on 1999 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Competitive Balance and Gate Revenue Sharing in Team Sports written by Stefan Szymanski and published by . This book was released on 2003 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Dynamic Competitive Balance Ratio as a New Method of Understanding Competitive Balance and Fan Attendance written by Nicholas M. Watanabe and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The theoretical premise of this research can be traced back to seminal studies of economist0́9s Simon Rottenberg (1956) and Walter Neale (1964), who both noted the importance of uncertainty of outcome in attracting spectators to live sporting events. In examining the economics of sport leagues, both researchers came upon this 0́the uncertainty of outcome hypothesis0́+ (UOH), which is the general premise that fans would rather see a contest in which teams are evenly paired with one another in terms of talent and strength. Stemming from the UOH, came the idea of competitive balance, the concept that there is a relative level of equality in on-field strength between teams in a league (Forrest & Simmons, 2002). Key questions which arise from this literature include: 0́In what manner can competitive balance be measured?0́+ and 0́Is competitive balance a significant factor in determining fan attendance at sporting events?0́+ In order to tackle these issues, along with the prior stated research questions, this dissertation research uses a two-fold approach to investigating competitive balance. Within the literature on competitive balance, there are a great number of metrics which have been developed, however researchers remain divided among which metric(s) are the best. With this in mind, this dissertation approaches this problem by the creation of a new competitive balance metric, the Dynamic Competitive Balance Ratio (DCBR). This metric, which is evolved from prior metrics (Humphreys, 2002), is special in that it allows for a different measure for each team in every time period, and its length can be adjusted for any time period larger than a single season. Thus, through the creation of this metric, this dissertation research attempts to further the competitive balance research through the creation of a new metric in order to correct for several existing issues among current competitive balance metrics. In the second part of this dissertation, the DCBR is included as part of an economic demand model to estimate fan demand for attending MLB games from 1980 till the present. In order to do this, a regression model is utilized to estimate results from the panel data set, with proper econometric corrections made to take into account a variety of issues which may arise such as: heteroskedasticity, autocorrelation, the use of fixed or random effects, and so forth. Because of the lack of demand studies in sport which have employed a competitive balance metric as part of the model, through construction and estimation of results, this dissertation provides an important extension of the theoretical understanding of competitive balance by giving further evidence of what effect competitive balance has on a consumer0́9s choice to attend sporting events. Analysis of the estimated results also provide a more robust picture of the factors which attract (or deter) consumers from choosing to attend MLB games in person, which in turn presents better information for sport managers to understand why fans come to sporting events. Such findings can be directly translated into better decision making in sport management, by informing administrators, owners, and managers as to what factors attract fans to sporting events, as well as the importance of having competitive balance in these sport leagues. It is thus, that this research examines the significance of competitive balance from a variety of levels. From this, it is evidenced that this dissertation research presents a number of contributions, in terms of theoretical knowledge, empirical understanding, as well as practical application of competitive balance and the demand for attendance at sporting events, and thus providing an overall improvement of sport for fans, owners, managers, and other related stakeholders.

Download or read book The Sport League s Dilemma written by Frederic Palomino and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We analyze a dynamic model of strategic interaction between a professional sport league that organizes a tournament, the teams competing to win it, and the broadcasters paying for the rights to televise it. Teams and broadcasters maximize expected profits, while the league's objective may be either to maximize the demand for the sport or to maximize the teams' joint profits. Demand depends positively on symmetry among teams (competitive balance) and how aggressively teams try to win (incentives to win). Revenue sharing increases competitive balance but decreases incentives to win. Under demand maximization, a performance-based reward scheme (used by European sport leagues) may be optimal. Under joint profit maximization, full revenue sharing (used by many US leagues) is always optimal. These results reflect institutional dierences among European and American sports leagues.

Download or read book Two Sided Network Effects and Competitive Balance in Professional Team Sports written by Sang Hoo Bae and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes issues associated with network effects and two-sidedness in the market for professional team sports. Teams in professional sports leagues have to compete both for players (inputs) and fans (consumers). In this setting, we construct a theoretical framework where fans are more attracted to a team with a large portion of talented players from a fixed talent pool, at the same time that players want to show their ability in front of a large number of fans. We observe that either perfect imbalance or alleviated imbalance will prevail as an equilibrium. The outcome depends upon the relative magnitude of two opposite effects, the product differentiation effect and the wage reduction effect caused by externalities from the size of talented players and fans respectively. Furthermore, we incorporate asymmetric relative quality effects into consumers' utility in order to analyze its impact on competitive balance. This is shown to either exacerbate or improve the imbalanced distribution of talented players, depending on fans' sensitivity to the relative quality between teams. The policy implications of revenue sharing on competitive balance and the level of wage offers under the condition of two-sided network effects are analyzed.

Download or read book The Oxford Handbook of Sports Economics Volume 2 written by Leo H. Kahane and published by Oxford University Press. This book was released on 2012-05-24 with total page 478 pages. Available in PDF, EPUB and Kindle. Book excerpt: Shmanske and Kahane have organized over 50 essays from prominent Sports Economists into two volumes around two related themes. This second volume explains how sports helps economics via quality data used to test a variety of economic theories.

Download or read book Sports Economics Present and Future Impact on General Economics written by Ruud H. Koning and published by Walter de Gruyter GmbH & Co KG. This book was released on 2016-11-21 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Comparative Economics of Sport written by S. Szymanski and published by Springer. This book was released on 2010-03-31 with total page 335 pages. Available in PDF, EPUB and Kindle. Book excerpt: Starting with a major survey of the economics of sport, this volume involves primarily a comparison of the European and American models of sport, how to restructure leagues to make them more competitive, the analysis of gate-sharing mechanisms, the economic impact of promotion and relegation and a comparison of broadcasting regimes.

Download or read book The Economic Theory of Professional Team Sports written by Stefan Késenne and published by Edward Elgar Publishing. This book was released on 2014-05-30 with total page 209 pages. Available in PDF, EPUB and Kindle. Book excerpt: This revised and updated edition of The Economic Theory of Professional Team Sports elaborates on the themes of the successful first edition of this book.

Download or read book Handbook of Sports Economics Research written by John Fizel and published by Routledge. This book was released on 2017-07-05 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: The wealth of data available on sports makes the industry a singular laboratory for observing economic and business behavior and theory. This unique reference on sports economics research provides a detailed perspective on the current state of the discipline. Covering both team and individual sports that include tennis, golf, and motor racing, the handbook explores what we know, what we do not know, what is stable, what is changing, what is certain, and what is controversial in sports economics. The expert contributors address issues in particular sports or comparisons among sports along major topics such as revenue and costs, labor markets, market structure, market outcomes, and public policy.

Download or read book Efficient Rent Seeking written by Alan Lockard and published by Springer Science & Business Media. This book was released on 2001-01-31 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: Some time ago one of the editors (Gordon Tullock) stumbled on a paradox in the competition for rents. He asked a previous research assistant (William Hunter) to work out some examples and gave a seminar on it. For reasons he cannot recall (but probably bad) he titled his talk `Efficient Rent Seeking'. As Editor of Public Choice he was able to publish without a referee. Incidentally, The Journal of Political Economy had turned it down on the grounds that the economy could not be that chaotic, and hence there must be something wrong even if the referee couldn't put his finger on it. There followed a long series of articles, mainly in Public Choice, in which various distinguished scholars proposed solutions to the paradox. The editor responded by finding fault with these solutions. In this case the editor was arguing against interest. He, like the referee for the JPE, believed that the market works, if not perfectly, at least very well. Nevertheless, the paradox resisted and persisted. It was like the paradox of the liar, and indeed in some cases did show exactly that paradox. Eventually everyone, including the editor, grew tired of the matter and the discussion sort of wound down, although it could not be said that it was either solved or even abated. It also began to appear that it had a much larger scope than just competitive rent seeking. Any contest for wealth, privilege, or prestige in which the chances of winning were affected by the investment of the contestants would appear to be subject to the same problem. The sum of the investments in equilibrium might be much less than the prize or much more. It depended on the structure of the contest, but the range of structures seemed to include almost all economic competition. Clearly, from the standpoint of economics, this was a distressing conclusion. Perhaps the whole vast structure of economic analysis rested on faulty foundations. Speaking frankly, neither of the editors thinks the situation is that desperate. We feel that there is a logical solution, even if we do not know what it is. The purpose of this volume is to attempt to get economists to turn to the problem and, hopefully, solve the paradox. We present here a substantial portion of the literature on the matter. We hope that the readers will be stimulated to think about the problem and, even more, we hope they will be able to solve it.