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Limitations of the relative standard deviation of win percentages for measuring competitive balance in sports leagues

  • P. Dorian Owen

    ()

    (Department of Economics, University of Otago)

The relative standard deviation of win percentages, the most widely used measure of within-season competitive balance, has an upper bound which is very sensitive to variation in the numbers of teams and games played. Taking into account this upper bound provides additional insight into comparisons of competitive balance across leagues or over time.

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File URL: http://www.business.otago.ac.nz/econ/research/discussionpapers/DP_0908.pdf
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File Function: Revised version, 2010
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Paper provided by University of Otago, Department of Economics in its series Working Papers with number 0908.

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Length: 13 pages
Date of creation: Jul 2009
Date of revision: Mar 2010
Handle: RePEc:otg:wpaper:0908
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  1. Kelly Goossens, 2006. "Competitive Balance in European Football - Comparison by Adapting Measures: National Measure of Seasonal Imbalance and Top 3," IASE Conference Papers 0620, International Association of Sports Economists.
  2. Oscar Bajo & Rafael Salas, 2002. "Inequality foundations of concentration measures: An application to the Hannah-Kay indices," Spanish Economic Review, Springer, vol. 4(4), pages 311-316.
  3. P. Owen & Michael Ryan & Clayton Weatherston, 2007. "Measuring Competitive Balance in Professional Team Sports Using the Herfindahl-Hirschman Index," Review of Industrial Organization, Springer, vol. 31(4), pages 289-302, December.
  4. Joshua Utt & Rodney Fort, 2002. "Pitfalls to Measuring Competitive Balance With Gini Coefficients," Journal of Sports Economics, , vol. 3(4), pages 367-373, November.
  5. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
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