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Measurement of competitive balance in professional team sports using the Normalized Concentration Ratio

  • Vasileios Manasis

    ()

    (University of Peloponnese)

  • Vassiliki Avgerinou

    ()

    (University of Peloponnese)

  • Ioannis Ntzoufras

    ()

    (Athens University of Economics and Business)

  • J. James Reade

    ()

    (University of Birmingham)

Competitive balance is an important concept in professional team sports; its measurement is, therefore, a critical issue. One of the most widely used indices, which was introduced for the estimation of seasonal competitive balance is the Concentration Ratio, which is a relatively simple index and measures the extent to which a league is dominated by a particular number of teams. However, it is shown that both the total number of league teams and the number of dominant teams under examination affects the index's boundaries, which results in a misleading interpretation concerning the level of competitive balance. Thus, we introduce the Normalized Concentration Ratio for the study of competitive balance across leagues or seasons.

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File URL: http://www.accessecon.com/Pubs/EB/2011/Volume31/EB-11-V31-I3-P227.pdf
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Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 31 (2011)
Issue (Month): 3 ()
Pages: 2529-2540

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Handle: RePEc:ebl:ecbull:eb-11-00609
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  1. Craig A. Depken II, 1996. "Free-Agency and the Competitiveness of Major-League Baseball," Industrial Organization 9610001, EconWPA, revised 31 Oct 1996.
  2. repec:cup:cbooks:9780521517140 is not listed on IDEAS
  3. Joshua Utt & Rodney Fort, 2002. "Pitfalls to Measuring Competitive Balance With Gini Coefficients," Journal of Sports Economics, , vol. 3(4), pages 367-373, November.
  4. El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-19, Nov.-Dec..
  5. J.A. Bikker & K. Haaf, 2000. "Measures of competition and concentration in the banking industry: a review of the literature," Research Series Supervision (discontinued) 27, Netherlands Central Bank, Directorate Supervision.
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