A NLIP Model on Wage Dispersion and Team Performance
AbstractUsing a Non-Linear Integer Programming (NLIP) model, I examine if wage differences between Super talents and Normal players improve the performance of four teams which participate in a tournament, such as in the UEFA Champions League (UCL) group matches. With ad-hoc wage differences, the optimal solutions of the model show that higher wage equality seems to improve the performance of all teams, irrespectively if the elasticity of substitution between Super- and Normal- players is high or low. In addition to that, a U-type performance exists in two teams with the highest and the second high elasticity of substitution. With team data from the 2011-12 UCL group matches and from the Italian Serie A over 2010-12 seasons, the wage dispersion has no effect on team performances.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39149.
Date of creation: 30 May 2012
Date of revision:
Players; Teams; Wages; Performance; Tournament;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
- J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-13 (All new papers)
- NEP-HRM-2012-06-13 (Human Capital & Human Resource Management)
- NEP-LAB-2012-06-13 (Labour Economics)
- NEP-SPO-2012-06-13 (Sports & Economics)
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