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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
Contact details of provider: Web page: http://www.cdes.fr/index.php?id=fr69

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Web page: http://www.byuresearch.org/naasportseconomists/

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References listed on IDEAS
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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 & Jean J., GABSZEWICZ, 2005. "The media and advertising : a table of two-sided markets," Discussion Papers (ECON - Département des Sciences Economiques) 2005060, Université catholique de Louvain, Département des Sciences Economiques.
  3. David Evans & Richard Schmalensee, 2007. "The Industrial Organization of Markets with Two-Sided Platforms," CPI Journal, Competition Policy International, vol. 3.
  4. Reinhard Grohs & Udo Wagner & Sabine Vsetecka, 2004. "Assessing The Effectiveness Of Sport Sponsorships – An Empirical Examination," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 56(2), pages 119-138, April.
  5. Roson Roberto, 2005. "Two-Sided Markets: A Tentative Survey," Review of Network Economics, De Gruyter, vol. 4(2), pages 1-19, June.
  6. Simon P. Anderson & Stephen Coate, 2003. "Market Provision of Broadcasting: A Welfare Analysis," Virginia Economics Online Papers 358, University of Virginia, Department of Economics.
  7. Grant Allan & Graeme Roy, 2008. "Does Television Crowd Out Spectators?," Journal of Sports Economics, , vol. 9(6), pages 592-605, December.
  8. Andrew S. Zimbalist, 2002. "Competitive Balance in Sports Leagues: An Introduction," Journal of Sports Economics, , vol. 3(2), pages 111-121, May.
  9. Kaiser, Ulrich & Wright, Julian, 2006. "Price structure in two-sided markets: Evidence from the magazine industry," International Journal of Industrial Organization, Elsevier, vol. 24(1), pages 1-28, January.
  10. Jean-Charles Rochet & Jean Tirole, 2002. "Cooperation Among Competitors: Some Economics Of Payment Card Associations," RAND Journal of Economics, The RAND Corporation, vol. 33(4), pages 549-570, Winter.
  11. Helmut Dietl & Tobias Duschl & Egon Franck & Markus Lang, 2012. "A Contest Model of a Professional Sports League with Two-Sided Markets," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 232(3), pages 336-359, May.
  12. Sloane, Peter J., 2006. "Rottenberg and the Economics of Sport after 50 Years: An Evaluation," IZA Discussion Papers 2175, Institute for the Study of Labor (IZA).
  13. Caillaud, Bernard & Jullien, Bruno, 2003. " Chicken & Egg: Competition among Intermediation Service Providers," RAND Journal of Economics, The RAND Corporation, vol. 34(2), pages 309-28, Summer.
  14. Oliver Budzinski, 2011. "The Institutional Framework for Doing Sports Business: Principles of EU Competition Policy in Sports Markets," Working Papers 108/11, University of Southern Denmark, Department of Environmental and Business Economics.
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  19. repec:rje:randje:v:37:y:2006:3:p:668-691 is not listed on IDEAS
  20. 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.
  21. Arne Feddersen & Wolfgang Maennig, 2009. "Arenas Versus Multifunctional Stadiums," Journal of Sports Economics, , vol. 10(2), pages 180-191, April.
  22. Mark Armstrong, 2006. "Competition in two‐sided markets," RAND Journal of Economics, RAND Corporation, vol. 37(3), pages 668-691, 09.
  23. repec:rje:randje:v:37:y:2006:3:p:645-667 is not listed on IDEAS
  24. Thomas Hoehn & Stefan Szymanski, 1999. "The Americanization of European football," Economic Policy, CEPR;CES;MSH, vol. 14(28), pages 203-240, 04.
  25. Eva Marikova Leeds & Michael A. Leeds & Irina Pistolet, 2007. "A Stadium by Any Other Name," Journal of Sports Economics, , vol. 8(6), pages 581-595, December.
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