Advanced Search
MyIDEAS: Login

Competitive Balance and Revenue Sharing in Sports Leagues With Utility-Maximizing Teams

Contents:

Author Info

  • Helmut M. Dietl

    (Department of Business Administration, University of Zurich, Zurich, Switzerland)

  • Martin Grossmann

    (Department of Business Administration, University of Zurich, Zurich, Switzerland)

  • Markus Lang

    ()
    (Department of Business Administration, University of Zurich, Zurich, Switzerland)

Abstract

This paper develops a contest model of a professional sports league in which clubs maximize a weighted sum of profits and wins (utility maximization). The model analyzes how more win-oriented behavior of certain clubs affects talent investments, competitive balance, and club profits. Moreover, in contrast to traditional models, the authors show that revenue sharing does not always reduce investment incentives due to the dulling effect. The authors identify a new effect of revenue sharing called the “sharpening effect.” In the presence of the sharpening effect (dulling effect), revenue sharing enhances (reduces) investment incentives and improves (deteriorates) competitive balance in the league.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://jse.sagepub.com/content/12/3/284.abstract
Download Restriction: no

Bibliographic Info

Article provided by in its journal Journal of Sports Economics.

Volume (Year): 12 (2011)
Issue (Month): 3 (June)
Pages: 284-308

as in new window
Handle: RePEc:sae:jospec:v:12:y:2011:i:3:p:284-308

Contact details of provider:

Related research

Keywords: competitive balance; contest; invariance proposition; revenue sharing; team sports league; utility maximization;

Other versions of this item:

Find related papers by JEL classification:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Martin Grossmann, 2011. "Evolutionarily Stable Strategies in Sports Contests," Working Papers 0044, University of Zurich, Center for Research in Sports Administration (CRSA).
  2. Halicioglu, Ferda, 2012. "An empirical study of relationship between FIFA world ranking and domestic football competition level: the case of Turkey," MPRA Paper 35662, University Library of Munich, Germany.
  3. Helmut Dietl & Rodney Fort & Markus Lang, 2011. "International Sports League Comparisons," Working Papers 0042, University of Zurich, Center for Research in Sports Administration (CRSA).

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:12:y:2011:i:3:p:284-308. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.