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Towards a New Dynamic Measure of Competitive Balance: A Study Applied to Australia’s Two Major Professional ‘Football’ Leagues

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  • Liam J. A. Lenten

    ()
    (School of Economics and Finance, La Trobe University, Victoria, 3086, Australia)

Abstract

A new measure for competitive balance between seasons is proposed, which takes the form of a mobility gain function, based on each team’s win ratios from the current and previous seasons. This ‘dynamic’ function measures competitive balance within a oneperiod change framework. While it is not suggested that this measure replace useful existing within-season measures, such as the widely used actual-to-idealised standard deviation (ASD/ISD) ratio, this measure does overcome one of the shortcomings of within-season measures – that is, the ability to pick up uncertainty of outcome from season to season, rather than merely from round-to-round. Hence, it is suggested that this measure could be used in conjunction with within-season measures in time-series analysis. An application to Australia’s Australian Football League (AFL) and National Rugby League (NRL) over a century of data reveals numerous interesting comparisons.

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Bibliographic Info

Article provided by Queensland University of Technology (QUT), School of Economics and Finance in its journal Economic Analysis and Policy (EAP).

Volume (Year): 39 (2009)
Issue (Month): 3 (December)
Pages: 407-428

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Handle: RePEc:eap:articl:v39:y:2009:i:3:p:407-428

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Keywords: Competitive Balance; Measurement Methods;

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  1. Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
  2. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-58, December.
  3. James G. Lynch & Jeffrey S. Zax, 2000. "The Rewards to Running," Journal of Sports Economics, , vol. 1(4), pages 323-340, November.
  4. Benno Torgler & Sascha L. Schmidt & Bruno S. Frey, 2008. "The Power of Positional Concerns," CREMA Working Paper Series 2008-07, Center for Research in Economics, Management and the Arts (CREMA).
  5. Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
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Cited by:
  1. Nicholas King & P. Dorian Owen & Rick Audas, 2012. "Playoff Uncertainty, Match Uncertainty and Attendance at Australian National Rugby League Matches," The Economic Record, The Economic Society of Australia, vol. 88(281), pages 262-277, 06.
  2. Vincent Hogan & Patrick Massey & Shane Massey, 2012. "Analysing Determinants of Match Attendance in the European Rugby Cup," Working Papers, School Of Economics, University College Dublin 201228, School Of Economics, University College Dublin.

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