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A combinatorial auction to sell TV broadcasting rights in league sports

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  • Henriques, David

Abstract

The centralized sale of TV broadcasting rights in league sports constitutes a cartel which in many European countries is allowed only if it complies with certain conditions set by competition authorities. Two of the most important conditions are: i) partial unbundling, i.e. the rights must be unbundled into several separate packages; and ii) the no-single-buyer rule, i.e. the packages must be sold to different broadcasters. This article shows how a combinatorial auction can be employed to sell broadcasting rights allocating them endogenously based on the broadcasters’ bids and, thus, without requiring the seller to pre-determine the packages of such rights. This feature can address various competition policy issues, including facilitating market entry and preventing coordination among bidders. Also, a combinatorial auction has the potential to achieve higher levels of allocative efficiency and higher revenue levels compared to auctions with pre-determined packages of broadcasting rights.

Suggested Citation

  • Henriques, David, 2023. "A combinatorial auction to sell TV broadcasting rights in league sports," Telecommunications Policy, Elsevier, vol. 47(6).
    • Handle: RePEc:eee:telpol:v:47:y:2023:i:6:s0308596123000502
    DOI: 10.1016/j.telpol.2023.102539
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    References listed on IDEAS

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