Sports Business and the Theory of Multisided Markets
AbstractDespite still being younger than a decade, the theory of multisided market has offered numerous valuable insights for the analysis of non-ordinary industries in which a supplier serves two distinct customer groups that are indirectly interrelated by externalities. Examples include payment systems, matching agencies, commercial media and software platforms. However, professional sports markets have largely been neglected so far in this kind of research although they possess the characteristics of multisided markets. We contribute to filling this gap by describing the platform elements of professional suppliers of sports events and outlining problems where an application of this theoretical framework is likely to provide valuable insights and to add to the existing knowledge. Among these problems are integrative pricing strategies of sports clubs towards such different customer groups like attendees, broadcasters, sponsors, etc., including their welfare and antitrust implications, design decisions of sports associations in order to promote positive feedback loops among the customer groups as well as strategies to reinforce positive externalities among customer groups and alleviate negative ones.
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Bibliographic InfoPaper provided by Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung) in its series MAGKS Papers on Economics with number 200811.
Length: 21 pages
Date of creation: 2008
Date of revision:
Publication status: Forthcoming in
sports economics; two-sided markets; multisided platforms; professional sports business; pricing strategies; broadcasting rights;
Other versions of this item:
- Oliver Budzinski & Janina Satzer, 2009. "Sports Business and the Theory of Multisided Markets," Working Papers 85/09, University of Southern Denmark, Department of Environmental and Business Economics.
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-20 (All new papers)
- NEP-COM-2008-09-20 (Industrial Competition)
- NEP-MKT-2008-09-20 (Marketing)
- NEP-NET-2008-09-20 (Network Economics)
- NEP-SPO-2008-09-20 (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.:
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