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A rationale for the coexistence of central and decentral marketing in team sports

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  • Oliver Gürtler

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    Abstract

    In some sports leagues, the sports association sells broadcasting rights centrally in order to create competitive balance. In other ones, the market is decentral. As a result, there is competitive imbalance. In this paper, the preferred kind of marketing of sports associations is analysed. Distinctions are made between three cases. In case one, the sports association is only interested in competitive balance. In the second case, it wishes to create a single high performing team, and in the third, it maximises aggregate performance. It is found that, depending on the preferences of the association, both kinds of marketing can be optimal.

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    File URL: http://www.wiwi.uni-bonn.de/bgsepapers/bonedp/bgse4_2005.pdf
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    Bibliographic Info

    Paper provided by University of Bonn, Germany in its series Bonn Econ Discussion Papers with number bgse4_2005.

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    Length: 27
    Date of creation: Feb 2005
    Date of revision:
    Handle: RePEc:bon:bonedp:bgse4_2005

    Contact details of provider:
    Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
    Fax: +49 228 73 6884
    Web page: http://www.bgse.uni-bonn.de

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    Keywords: central marketing; decentral marketing; collective tournament; complementarity;

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    1. Stergios Skaperdas, 1996. "Contest success functions (*)," Economic Theory, Springer, vol. 7(2), pages 283-290.
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    8. Peel, David A & Thomas, Dennis A, 1992. "The Demand for Football: Some Evidence on Outcome Uncertainty," Empirical Economics, Springer, vol. 17(2), pages 323-31.
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    Cited by:
    1. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.

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