The optimal size of a sports league
AbstractIn this contribution, we try to investigate, based on a simple theoretical model, what the optimal number of teams in a league is, taking into account the most important determinants of club revenue and fans’ utility. The number of teams fixed by a monopoly league representing the interests of the participating clubs is clearly smaller than the number of teams in the competitive free-entry market equilibrium. We have also tested, using European football data, whether the long-term equilibrium number of teams in the national top divisions has been determined by the market or by the insiders of the monopoly leagues.
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Bibliographic InfoPaper provided by University of Antwerp, Faculty of Applied Economics in its series Working Papers with number 2008017.
Length: 18 pages
Date of creation: Oct 2008
Date of revision:
Other versions of this item:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-12-14 (All new papers)
- NEP-MIC-2008-12-14 (Microeconomics)
- NEP-SPO-2008-12-14 (Sports & Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sonia Falconieri & Frédéric Palomino & József Sákovics, 2004. "Collective Versus Individual Sale of Television Rights in League Sports," Journal of the European Economic Association, MIT Press, vol. 2(5), pages 833-862, 09.
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