Cross-ownership, league policies and player investment across sports leagues
Although many sports leagues are viewed as monopolies, research suggests that some economic competition exists between teams in dierent sports leagues. If fans make consumption choices based on the quality of all teams that are present in their region, then economic competition and ownership structure can impact an owner's incentive to invest in talent. This article examines dierences between monopolists, duopolists and cross-ownership. Consumer preferences and fan loyalty are allowed to vary across sports, and the winning percentages of teams in other leagues aects demand. Our model shows that economic competition results in an ambiguous level of investment compared to a monopolist. A rm that engages in cross-ownership will invest less in talent compared to a duopolist, but the dierence in prots is ambiguous. League policies are studied and are shown to aect the quality of teams in other leagues.
|Date of creation:||21 Jan 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Skaperdas, Stergios, 1996.
"Contest Success Functions,"
Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-90, February.
- SZYMANSKI, Stefan & KÉSENNE, Stefan, 2003.
"Competitive balance and gate revenue sharing in team sports,"
2003003, University of Antwerp, Faculty of Applied Economics.
- Stefan Szymanski & Stefan KÈsenne, 2004. "Competitive balance and gate revenue sharing in team sports," Journal of Industrial Economics, Wiley Blackwell, vol. 52(1), pages 165-177, 03.
- Jason Winfree & Jill McCluskey & Ron Mittelhammer & Rodney Fort, 2004. "Location and attendance in major league baseball," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2117-2124.
- Stefan Szymanski, 2003. "The Economic Design of Sporting Contests," Journal of Economic Literature, American Economic Association, vol. 41(4), pages 1137-1187, December.
- Scott Tainsky, 2010. "Television Broadcast Demand for National Football League Contests," Journal of Sports Economics, , vol. 11(6), pages 629-640, December.
- Stephen W. Salant & Sheldon Switzer & Robert J. Reynolds, 1983. "Losses From Horizontal Merger: The Effects of an Exogenous Change in Industry Structure on Cournot-Nash Equilibrium," The Quarterly Journal of Economics, Oxford University Press, vol. 98(2), pages 185-199.
- E. Woodrow Eckard, 2006. "Comment: "Professional Team Sports Are Only a Game: The Walrasian Fixed-Supply Conjecture Model, Contest-Nash Equilibrium, and the Invariance Principle"," Journal of Sports Economics, , vol. 7(2), pages 234-239, May.
- Craig A. Depken, II, 2001. "Fan Loyalty in Professional Sports: An Extension to the National Football League," Journal of Sports Economics, , vol. 2(3), pages 275-284, August.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, March.
- El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-19, Nov.-Dec..
- Jason Winfree, 2009. "Owners incentives during the 2004-05 National Hockey League lockout," Applied Economics, Taylor & Francis Journals, vol. 41(25), pages 3275-3285.
- Daniel, Rascher & Matt, Brown & Mark, Nagel & Chad, McEvoy, 2009. "Where did National Hockey League Fans go During the 2004-2005 Lockout?: An Analysis of Economic Competition Between Leagues," MPRA Paper 25804, University Library of Munich, Germany.
- Craig A. Depken II, 2000. "Fan Loyalty and Stadium Funding in Professional Baseball," Journal of Sports Economics, , vol. 1(2), pages 124-138, May.
- Rodney J. Paul, 2003. "Variations in NHL Attendance," American Journal of Economics and Sociology, Wiley Blackwell, vol. 62(2), pages 345-364, 04.
- Phillip Miller, 2006. "Major League Duopolists: When Baseball Clubs Play in Two-Team Cities," Working Papers 0628, International Association of Sports Economists;North American Association of Sports Economists.
- A Dawson & P Downward, 2000. "Measuring Habit Persistence Effects in Attendance at Professional Team Sports Encounters: a cautionary note," Economic Issues Journal Articles, Economic Issues, vol. 5(1), pages 37-40, March.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39218. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.