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

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Oliver Budzinski & Janina Satzer, 2011. "Sports Business and Multisided Markets: Towards a New Analytical Framework? (Long Version)," Working Papers 1104, International Association of Sports Economists;North American Association of Sports Economists.
  • Handle: RePEc:spe:wpaper:1104
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    File URL: http://college.holycross.edu/RePEc/spe/BudzinskiSatzer_MultisidedMarkets.pdf
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. Budzinski, Oliver & Müller, Anika, 2013. "Finanzregulierung und internationale Wettbewerbsfähigkeit: Der Fall Deutsche Bundesliga," Ilmenau Economics Discussion Papers 82, Ilmenau University of Technology, Institute of Economics.
    2. repec:bla:coecpo:v:36:y:2018:i:1:p:215-233 is not listed on IDEAS
    3. Budzinski, Oliver, 2017. "Four cases in sports competition policy: Baseball, judo, football, and motor racing," Ilmenau Economics Discussion Papers 109, Ilmenau University of Technology, Institute of Economics.
    4. Budzinski, Oliver & Müller-Kock, Anika, 2016. "Market power and media revenue allocation in professonal sports: The case of formula one," Ilmenau Economics Discussion Papers 102, Ilmenau University of Technology, Institute of Economics.
    5. Budzinski, Oliver & Feddersen, Arne, 2015. "Grundlagen der Sportnachfrage: Theorie und Empirie der Einflussfaktoren auf die Zuschauernachfrage," Ilmenau Economics Discussion Papers 94, Ilmenau University of Technology, Institute of Economics.
    6. Jürgen Rösch, 2014. "More Surf, Less Bias: The Influence of Advertising in Two-Sided Sport Markets," International Journal of Sport Finance, Fitness Information Technology, vol. 9(4), pages 331-345, November.
    7. 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 Sociology, Environmental and Business Economics.
    8. Laura Mendes Louzada & Andre Lucirton Costa & Janaina de Moura Engracia Giraldi, 2014. "Return on Investment in Sports Marketing Initiatives: A Study Focusing on a Brazilian Soccer Team," International Journal of Business Administration, International Journal of Business Administration, Sciedu Press, vol. 5(5), pages 71-83, September.
    9. Budzinski, Oliver, 2017. "Sind Wettbewerbe im Profisport Rattenrennen?," Ilmenau Economics Discussion Papers 104, Ilmenau University of Technology, Institute of Economics.
    10. Budzinski, Oliver, 2016. "Aktuelle Herausforderungen der Wettbewerbspolitik durch Marktplätze im Internet," Ilmenau Economics Discussion Papers 103, Ilmenau University of Technology, Institute of Economics.

    More about this item

    Keywords

    sports economics; sports management; two-sided markets; multisided platforms; professional sports business; pricing strategies; broadcasting rights;

    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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