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The Effects of Cross-Ownership and League Policies Across Sports Leagues Within a City


  • Kevin Mongeon


  • Jason Winfree



Since prior research suggests that some economic competition exists between teams in different sports leagues, economic competition and ownership structure can affect an owner’s incentive to invest in talent. This paper uses a theoretical model to examine the differences in owners’ incentives to invest in talent when they are operating as monopolists, as duopolists, or as a cross-owned team. Our model shows that economic competition results in an ambiguous level of investment compared to that of a monopolist. A firm that engages in cross-ownership will invest less in talent compared to a duopolist, but the difference in profits is ambiguous. League policies are studied and are shown to affect the quality of teams in other leagues. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Kevin Mongeon & Jason Winfree, 2013. "The Effects of Cross-Ownership and League Policies Across Sports Leagues Within a City," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(3), pages 145-162, November.
  • Handle: RePEc:kap:revind:v:43:y:2013:i:3:p:145-162 DOI: 10.1007/s11151-013-9374-z

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    References listed on IDEAS

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    More about this item


    Ownership structures; Sports leagues; Talent investment; L83;

    JEL classification:

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


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