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Welfare Maximizing Competitive Balance: the Evidence from Top European Football leagues

Author

Listed:
  • Dejan Trifunovi?

    (Faculty of Economics, University of Belgrade)

  • Vito Pipitone

    (CNR & LUMSA University)

Abstract

In this paper we consider the pattern of competitive balance and the share of gate receipts in the top 5 European football leagues and the Scottish Premier League. Based on empirically identified preferences of fans in these leagues from different studies, we aim to identify whether the change of competitive balance moves the league towards or away from the welfare maximizing competitive balance. We have identified the reduction of competitive balance in Serie A and the English Premier League (EPL) in the seasons 2010/11-2018/19. In Serie A, this change of competitive balance does not reduce welfare, while it reduces welfare in EPL. There is also the reduction of competitive balance in Ligue 1, that does not make stadium fans worse off, but possibly reduces the surplus of media fans. In the other considered leagues, there is no trend of competitive balance, and we can only identify welfare consequences of the change of competitive balance in some sub-periods.

Suggested Citation

  • Dejan Trifunovi? & Vito Pipitone, 0000. "Welfare Maximizing Competitive Balance: the Evidence from Top European Football leagues," Proceedings of International Academic Conferences 11113139, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:11113139
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Football leagues; competitive balance; fan preferences; welfare maximization;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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