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Bonus, effort, costs, market size and teams' performance

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Author Info
Papahristodoulou, Christos

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Abstract

This paper examines the effects of a win bonus, effort, costs and team size, on the demand for talented players, the win percentage and the profits of small and big teams. Teams play a Cournot game, under the following objective functions: (i) teams maximize profits, (ii) teams maximize win percentage, (iii) the small team maximizes profit and the big win percentage, and (iv) vice versa. The effects are based on a priori selected parameter values and bounds, as well as from optimal solutions of non-linear programs, by maximizing anyone of the four win percentage formulae, derived from the respective Cournot reaction functions.

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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 16989.

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Date of creation: 28 Aug 2009
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Handle: RePEc:pra:mprapa:16989

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Related research
Keywords: Teams; talents; effort; win bonus; win percentage; competitive balance; profits;

Find related papers by JEL classification:
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
M21 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - Business Economics

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  1. Stefan Szymanski & Stefan KÈsenne, 2004. "Competitive balance and gate revenue sharing in team sports," Journal of Industrial Economics, Blackwell Publishing, vol. 52(1), pages 165-177, 03. [Downloadable!] (restricted)
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  2. Egon Franck & Stephan Nüesch, 2007. "Wage Dispersion and Team Performance - An Empirical Panel Analysis," Working Papers 0073, University of Zurich, Institute for Strategy and Business Economics (ISU). [Downloadable!]
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This page was last updated on 2009-11-29.

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