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Sports Business and the Theory of Multisided Markets

Author

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  • Oliver Budzinski

    (Philipps-University Marburg)

  • Janina Satzer

    (Philipps-University Marburg)

Abstract

Despite still being younger than a decade, the theory of multisided market has offered numerous valuable insights for the analysis of non-ordinary industries in which a supplier serves two distinct customer groups that are indirectly interrelated by externalities. Examples include payment systems, matching agencies, commercial media and software platforms. However, professional sports markets have largely been neglected so far in this kind of research although they possess the characteristics of multisided markets. We contribute to filling this gap by describing the platform elements of professional suppliers of sports events and outlining problems where an application of this theoretical framework is likely to provide valuable insights and to add to the existing knowledge. Among these problems are integrative pricing strategies of sports clubs towards such different customer groups like attendees, broadcasters, sponsors, etc., including their welfare and antitrust implications, design decisions of sports associations in order to promote positive feedback loops among the customer groups as well as strategies to reinforce positive externalities among customer groups and alleviate negative ones.

Suggested Citation

  • Oliver Budzinski & Janina Satzer, 2008. "Sports Business and the Theory of Multisided Markets," MAGKS Papers on Economics 200811, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  • Handle: RePEc:mar:magkse:200811
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    References listed on IDEAS

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    Cited by:

    1. Saldsieder Nina & Wentzel Dirk, 2014. "Ordnungsfragen des europäischen Profifußballs: Das Konzept des Financial Fair Play und seine Erfolgsaussichten / The Concept of Financial Fair Play and his prospects of success," ORDO. Jahrbuch für die Ordnung von Wirtschaft und Gesellschaft, De Gruyter, vol. 65(1), pages 229-262, January.
    2. Filistrucchi, L. & Gerardin, D. & van Damme, E.E.C. & Keunen, S. & Klein, T.J. & Michielsen, T.O. & Wileur, J., 2010. "Mergers in Two-Sided Markets - A Report to the NMa," Other publications TiSEM f901d1fe-8878-444e-a685-8, Tilburg University, School of Economics and Management.
    3. Saldsieder, Nina, 2016. "Gestaltungspotentiale der Ordnung zweiseitiger Märkte am Beispiel der ersten deutschen Bundesliga," Working Papers for Marketing & Management 4, Offenburg University, Department of Media and Information.
    4. Raul Caruso, 2009. "Crime and Sport Participation in Itay: Evidence from Panel Data Regional Analysis over the Period 1997-2003.\," Working Papers 0904, International Association of Sports Economists;North American Association of Sports Economists.
    5. Raul Caruso, 2011. "Relational Goods at Work! Crime and Sport Participation in Italy: Evidence from Panel Data Regional Analysis over the Period 1997–2003," Chapters, in: Wladimir Andreff (ed.), Contemporary Issues in Sports Economics, chapter 3, Edward Elgar Publishing.

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    More about this item

    Keywords

    sports economics; two-sided markets; multisided platforms; professional sports business; pricing strategies; broadcasting rights;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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