Bonus, effort, costs, market size and teams' performance
AbstractThis 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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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 16989.
Date of creation: 28 Aug 2009
Date of revision:
Teams; talents; effort; win bonus; win percentage; competitive balance; profits;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; 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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- Helmut Dietl & Markus Lang & Alexander Rathke, 2009.
"The Combined Effect of Salary Restrictions and Revenue Sharing in Sports Leagues,"
0102, University of Zurich, Institute for Strategy and Business Economics (ISU), revised Jan 2010.
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"Competitive balance and gate revenue sharing in team sports,"
2003003, University of Antwerp, Faculty of Applied Economics.
- Stefan Szymanski & Stefan KÈsenne, 2004. "Competitive balance and gate revenue sharing in team sports," Journal of Industrial Economics, Wiley Blackwell, vol. 52(1), pages 165-177, 03.
- Egon Franck & Stephan Nüesch, 2007.
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0017, University of Zurich, Center for Research in Sports Administration (CRSA).
- 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).
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