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Revenue sharing and competitive balance. Does it invariance proposition hold?

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Author Info
Késenne S.

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Abstract

This short paper, challenging the so-called invariance proposition, argues that, for a general n-team model with profit maximizing clubs and concave revenue functions, there are reasons to believe that revenue sharing can worsen the competitive balance among teams in a professional sports league. If clubs are win maximizers, revenue sharing improves the competitive balance.

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File URL: http://www.ua.ac.be/download.aspx?c=*TEWHI&n=14362&ct=009828&e=21480
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Publisher Info
Paper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2003021.

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Length: 15 pages
Date of creation: Aug 2003
Date of revision:
Handle: RePEc:ant:wpaper:2003021

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