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The Impact of Pool Sharing on the Distribution of Playing Talent in the N-Team Leagues

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  • Masaki Fujimoto

Abstract

This article exactly determines the impact of pool sharing on the talent distribution in the league for a general n –team model where each team is a profit maximizer, each team has the Nash conjectures, each team's revenue depends only on relative team qualities, and the supply of talent is fixed. It is shown that when a pool-sharing agreement is introduced, larger-market teams with greater marginal revenues of winning before sharing will demand more wins and talents than before sharing, while smaller-market teams with smaller marginal revenues of winning before sharing will demand less wins and talents than before sharing.

Suggested Citation

  • Masaki Fujimoto, 2025. "The Impact of Pool Sharing on the Distribution of Playing Talent in the N-Team Leagues," Journal of Sports Economics, , vol. 26(7), pages 816-841, October.
    • Handle: RePEc:sae:jospec:v:26:y:2025:i:7:p:816-841
    DOI: 10.1177/15270025251348166
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    References listed on IDEAS

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