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The Win Maximization Model Reconsidered

Author

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  • Stefan Késenne

    (University of Antwerp)

Abstract

In this article, the author reconsiders the so-called win maximization model, taking into account a number of criticisms that have been raised in the literature. One of the main issues is the application of the more relevant Cournot-Nash equilibrium, rather than the Walrasian fixed-supply model, to the European football industry with its flexible talent supply in an open international player market. At the same time, the hypothesis of a simple market clearing salary level has been replaced with the theory of efficiency wages to determine the salary level. Some important consequences of the application of the efficiency wage theory have been investigated.

Suggested Citation

  • Stefan Késenne, 2006. "The Win Maximization Model Reconsidered," Journal of Sports Economics, , vol. 7(4), pages 416-427, November.
    • Handle: RePEc:sae:jospec:v:7:y:2006:i:4:p:416-427
    DOI: 10.1177/1527002505279347
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    References listed on IDEAS

    as
    1. Stefan KÉsenne, 2004. "Competitive Balance and Revenue Sharing," Journal of Sports Economics, , vol. 5(2), pages 206-212, May.
    2. Ferguson, D G, , et al, 1991. "The Pricing of Sports Events: Do Teams Maximize Profit?," Journal of Industrial Economics, Wiley Blackwell, vol. 39(3), pages 297-310, March.
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    5. Donald L. Alexander, 2001. "Major League Baseball," Journal of Sports Economics, , vol. 2(4), pages 341-355, November.
    6. Stefan Szymanski & Stefan Késenne, 2010. "Competitive Balance and Gate Revenue Sharing in Team Sports," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 7, pages 229-243, Palgrave Macmillan.
    7. Stefan Kesenne, 2000. "Revenue Sharing and Competitive Balance in Professional Team Sports," Journal of Sports Economics, , vol. 1(1), pages 56-65, February.
    8. Sloane, Peter J, 1971. "The Economics of Professional Football: The Football Club as a Utility Maximiser," Scottish Journal of Political Economy, Scottish Economic Society, vol. 18(2), pages 121-146, June.
    9. Stefan Késenne, 2005. "Revenue Sharing and Competitive Balance," Journal of Sports Economics, , vol. 6(1), pages 98-106, February.
    10. Andrew Zimbalist, 2003. "Sport as Business," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 503-511, Winter.
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    More about this item

    Keywords

    sports economics; professional team sports; efficiency wages;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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