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Revenue sharing and competitive balance. Does it invariance proposition hold?

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  • KÉSENNE, Stefan

Abstract

This short paper, challenging the so-called invariance proposition, argues that, for a general n-team model with profit maximizing clubs and concave revenue functions, there are reasons to believe that revenue sharing can worsen the competitive balance among teams in a professional sports league. If clubs are win maximizers, revenue sharing improves the competitive balance.

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  • KÉSENNE, Stefan, "undated". "Revenue sharing and competitive balance. Does it invariance proposition hold?," Working Papers 2003021, University of Antwerp, Faculty of Applied Economics.
  • Handle: RePEc:ant:wpaper:2003021
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    File URL: https://repository.uantwerpen.be/docman/irua/4aded5/f23fad85.pdf
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    Cited by:

    1. Rockerbie, Duane, 2011. "The Invariance Proposition in Baseball: New Evidence," MPRA Paper 55020, University Library of Munich, Germany.
    2. Michela Pierini, 2011. "Diritti Tv E Competitive Balance Nel Calcio Professionistico Italiano," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 7(2), pages 87-113, September.

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