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Optimal Competitive Balance in Single-Game Ticket Sports Leagues

Author

Listed:
  • Rodney Fort

    (Sport Management, University of Michigan, Ann Arbor, USA, rodfort@umich.edu)

  • James Quirk

    (Division of Humanities and Social Science, California Institute of Technology (Retired), Pasadena, USA)

Abstract

The authors extend the theory of optimal competitive balance to leagues where single-game ticket sales dominate revenues. Whether a planner that maximizes the sum of fan and owner surpluses prefers more balance or less in such a league depends on the relative magnitude of marginal consumers’ surpluses with respect to talent in larger and smaller revenue markets. This relationship is much more complex than previous cases in the literature. Ultimately, then, the determination of whether more balance is preferred to less in any particular sports league requires careful and thorough empirical investigation.

Suggested Citation

  • Rodney Fort & James Quirk, 2010. "Optimal Competitive Balance in Single-Game Ticket Sports Leagues," Journal of Sports Economics, , vol. 11(6), pages 587-601, December.
    • Handle: RePEc:sae:jospec:v:11:y:2010:i:6:p:587-601
    DOI: 10.1177/1527002509359906
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Duane Rockerbie & Stephen Easton, 2018. "Revenue Sharing in Major League Baseball: The Moments That Meant so Much," IJFS, MDPI, vol. 6(3), pages 1-16, August.
    2. Brad R. Humphreys & Thomas J. Miceli, 2019. "The Peculiar Preferences of Sports Fans: Toward a Preference-Based Motivation for the Uncertainty of Outcome Hypothesis," Journal of Sports Economics, , vol. 20(6), pages 782-796, August.
    3. Jason A. Winfree, 2021. "If You Don'T Like The Outcome, Change The Contest," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 329-343, January.
    4. Lee Scyoc & M. Kevin McGee, 2016. "Testing for competitive balance," Empirical Economics, Springer, vol. 50(3), pages 1029-1043, May.
    5. Helmut Dietl & Egon Franck & Markus Lang & Alexander Rathke, 2010. "Organizational Differences between U.S. Major Leagues and European Leagues: Implications for Salary Caps," Working Papers 0122, University of Zurich, Institute for Strategy and Business Economics (ISU).
    6. Dorian Owen, 2014. "Measurement of competitive balance and uncertainty of outcome," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 3, pages 41-59, Edward Elgar Publishing.
    7. Raul Caruso & Francesco Addesa & Marco Di Domizio, 2019. "The Determinants of the TV Demand for Soccer: Empirical Evidence on Italian Serie A for the Period 2008-2015," Journal of Sports Economics, , vol. 20(1), pages 25-49, January.
    8. Madden, Paul, 2012. "Fan welfare maximization as a club objective in a professional sports league," European Economic Review, Elsevier, vol. 56(3), pages 560-578.
    9. Dejan Trifunovi? & Vito Pipitone, 0000. "Welfare Maximizing Competitive Balance: the Evidence from Top European Football leagues," Proceedings of International Academic Conferences 11113139, International Institute of Social and Economic Sciences.
    10. Kato, Kazuhiko, 2023. "Effects of a uniform relative emission standard in a professional team sports league," MPRA Paper 117009, University Library of Munich, Germany.
    11. P. Dorian Owen & Nicholas King, 2015. "Competitive Balance Measures In Sports Leagues: The Effects Of Variation In Season Length," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 731-744, January.
    12. repec:qut:auncer:2013_04 is not listed on IDEAS
    13. Rockerbie, Duane & Easton, Stephen, 2017. "Risk Diversification from Revenue Sharing in a Professional Sports League: Measuring Welfare Gains," MPRA Paper 77431, University Library of Munich, Germany.
    14. Rodney Fort, 2015. "Managerial Objectives: A Retrospective on Utility Maximization in Pro Team Sports," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(1), pages 75-89, February.
    15. Alexander John Bond & Francesco Addesa, 2020. "Competitive Intensity, Fans’ Expectations, and Match-Day Tickets Sold in the Italian Football Serie A, 2012-2015," Journal of Sports Economics, , vol. 21(1), pages 20-43, January.

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