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The adjusted churn: an index of competitive balance for sports leagues based on changes in team standings over time

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Author Info

  • Daniel Mizak

    ()
    (Frostburg State University)

  • Anthony Stair

    ()
    (Frostburg State University)

  • John Neral

    ()
    (Frostburg State University)

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    Abstract

    This paper introduces an index called the adjusted churn, designed to measure competitive balance in sports leagues based on changes in team standings over time. This is a simple yet powerful index that varies between zero and one. A value of zero indicates no change in league standings from year to year and therefore minimal competitive balance. A value of one indicates the maximum possible turnover in league standings from year to year and therefore a high level of competitive balance. Application of this index to Major League Baseball suggests that there has been a significant decline in competitive balance in MLB since the 1990s with the most severe decline occurring in the American League. This index also indicates minimal competitive balance for the American League Eastern Division of MLB from 1998 to 2003

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    File URL: http://www.accessecon.com/pubs/EB/2007/Volume26/EB-07Z00005A.pdf
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    Bibliographic Info

    Article provided by AccessEcon in its journal Economics Bulletin.

    Volume (Year): 26 (2007)
    Issue (Month): 3 ()
    Pages: 1-7

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    Handle: RePEc:ebl:ecbull:eb-07z00005

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    1. Martin B. Schmidt & David J. Berri, 2003. "On the Evolution of Competitive Balance: The Impact of an Increasing Global Search," Economic Inquiry, Western Economic Association International, vol. 41(4), pages 692-704, October.
    2. Andrew S. Zimbalist, 2002. "Competitive Balance in Sports Leagues: An Introduction," Journal of Sports Economics, , vol. 3(2), pages 111-121, May.
    3. Eckard, E Woodrow, 2001. "Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention," Economic Inquiry, Western Economic Association International, vol. 39(3), pages 430-43, July.
    4. Joshua Utt & Rodney Fort, 2002. "Pitfalls to Measuring Competitive Balance With Gini Coefficients," Journal of Sports Economics, , vol. 3(4), pages 367-373, November.
    5. Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 133-148, May.
    6. Martin Schmidt & David Berri, 2002. "Competitive Balance and Market Size in Major League Baseball: A Response to Baseball's Blue Ribbon Panel," Review of Industrial Organization, Springer, vol. 21(1), pages 41-54, August.
    7. repec:ebl:ecbull:v:12:y:2004:i:9:p:1-14 is not listed on IDEAS
    8. Daniel Mizak & Anthony Stair, 2004. "The relationship between payroll and performance disparity in major league baseball: an alternative measure," Economics Bulletin, AccessEcon, vol. 12(9), pages 1-14.
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    Cited by:
    1. P. Dorian Owen, 2013. "Measurement of Competitive Balance and Uncertainty of Outcome," Working Papers 1311, University of Otago, Department of Economics, revised Aug 2013.

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