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Competition in Soccer Leagues

Author

Listed:
  • Bodil Olai Hansen

    (Copenhagen Business School)

  • Mich Tvede

    (Department of Economics, University of Copenhagen)

Abstract

In the present paper a model of competition between sports clubs in a sports league is presented. Clubs are endowed with initial players but at a cost clubs are able to sell their initial players and buy new players. The results are that: if the quality of players is one-dimensional, then equilibria in pure strategies exist, and; if the quality of players is multi-dimensional, then there need not exist equilibria in pure strategies, but equilibria in mixed strategies exist. Equilibria in mixed strategies resemblance signings on deadline day in european soccer.

Suggested Citation

  • Bodil Olai Hansen & Mich Tvede, 2007. "Competition in Soccer Leagues," Discussion Papers 07-31, University of Copenhagen. Department of Economics.
  • Handle: RePEc:kud:kuiedp:0731
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    File URL: http://www.econ.ku.dk/english/research/publications/wp/2007/0731.pdf/
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    More about this item

    Keywords

    competition between sports clubs; dimension of quality of players; equilibrium in pure strategies; equilibrium in mixed strategies;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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