In the present paper a model of competition between sports clubs in a sports league is presented. Clubs are endowed with initial players but at a cost clubs are able to sell their initial players and buy new players. The results are that: if the quality of players is one-dimensional, then equilibria in pure strategies exist, and; if the quality of players is multi-dimensional, then there need not exist equilibria in pure strategies, but equilibria in mixed strategies exist. Equilibria in mixed strategies resemblance signings on deadline day in european soccer.
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Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number
07-31.
Length: 10 pages Date of creation: Nov 2007 Date of revision: Handle: RePEc:kud:kuiedp:0731
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Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games D21 - Microeconomics - - Production and Organizations - - - Firm Behavior L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
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