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Sports Business and Multisided Markets: Towards a New Analytical Framework? (Long Version)

  • Oliver Budzinski

    ()

    (Markets & Competition Group, Department of Environmental and Business Economics, University of Southern Denmark)

  • Janina Satzer

    ()

    (Markets & Competition Group, Department of Environmental and Business Economics, University of Southern Denmark)

Despite still being younger than a decade, the theory of multisided markets has offered numerous valuable insights for the analysis of 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. This conceptual paper contributes to filling this gap by describing the platform elements of professional suppliers of sports events and conceptually outlining issues 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 management strategies to reinforce positive externalities among customer groups and alleviate negative ones.

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File URL: http://college.holycross.edu/RePEc/spe/BudzinskiSatzer_MultisidedMarkets.pdf
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Paper provided by International Association of Sports Economists & North American Association of Sports Economists in its series Working Papers with number 1104.

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Length: 27 pages
Date of creation: Mar 2011
Date of revision:
Handle: RePEc:spe:wpaper:1104
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  1. Helmut Dietl & Tobias Duschl, 2009. "The Organization of Professional Sports Leagues: A Comparison of European and North-American Leagues from the Perspective of Platform Organization," Working Papers 0119, University of Zurich, Institute for Strategy and Business Economics (ISU).
  2. Simon P. Anderson & Stephen Coate, 2005. "Market Provision of Broadcasting: A Welfare Analysis," Review of Economic Studies, Oxford University Press, vol. 72(4), pages 947-972.
  3. Oliver Budzinski, 2011. "The Institutional Framework for Doing Sports Business: Principles of EU Competition Policy in Sports Markets," Working Papers 1103, International Association of Sports Economists;North American Association of Sports Economists.
  4. Dewenter, Ralf & Haucap, Justus, 2008. "Wettbewerb als Aufgabe und Problem auf Medienmaerkten: Fallstudien aus Sicht der "Theorie zweiseitiger Maerkte"," Working Paper 78/2008, Helmut Schmidt University, Hamburg.
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  8. Helmut Dietl & Tobias Duschl & Egon Franck & Markus Lang, 2009. "A Contest Model of a Professional Sports League with Two-Sided Markets," Working Papers 0912, International Association of Sports Economists;North American Association of Sports Economists.
  9. ANDERSON, Simon P. & GABSZEWICZ, Jean J., 2005. "The media and advertising : a tale of two-sided markets," CORE Discussion Papers 2005088, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  12. Richard Schmalensee, 2001. "Payment Systems and Interchange Fees," NBER Working Papers 8256, National Bureau of Economic Research, Inc.
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  17. Peter J. Sloane, 2006. "Rottenberg and the Economics of Sport after 50 years: An Evaluation," IASE Conference Papers 0642, International Association of Sports Economists.
  18. Hans Jarle Kind & Tore Nilssen & Lars Sørgard, 2006. "Competition for Viewers and Advertisers in a TV Oligopoly," CESifo Working Paper Series 1862, CESifo Group Munich.
  19. Thomas Hoehn & Stefan Szymanski, 1999. "The Americanization of European football," Economic Policy, CEPR;CES;MSH, vol. 14(28), pages 203-240, 04.
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