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The search for optimal competitive balance in formula one

Author

Listed:
  • Krauskopf, Thomas
  • Langen, Martin
  • Bünger, Björn

Abstract

In this paper an analysis of the determinants of attractiveness of the Formula One is attempted. Therefore the concept of competitive balance will be explained and applied. The principal item of this analysis will be the result that there is an optimal level of competitive balance which maximizes the attractiveness. This concept will be applied through an empirical analysis of the determinants of the German Formula One number of TV viewers. It is shown that the influence of competitive balance is not totally clear. A too high level of competitive balance seems to be as detrimental as a too low level of competitive balance.

Suggested Citation

  • Krauskopf, Thomas & Langen, Martin & Bünger, Björn, 2010. "The search for optimal competitive balance in formula one," CAWM Discussion Papers 38, University of Münster, Center of Applied Economic Research Münster (CAWM).
  • Handle: RePEc:zbw:cawmdp:38
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    File URL: https://www.econstor.eu/bitstream/10419/51362/1/672457962.pdf
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    References listed on IDEAS

    as
    1. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press, vol. 19(4), pages 478-502, Winter.
    2. Camilla Mastromarco & Marco Runkel, 2009. "Rule changes and competitive balance in Formula One motor racing," Applied Economics, Taylor & Francis Journals, vol. 41(23), pages 3003-3014.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Sports Economics; Formula 1; competitive balance; attractiveness of sports;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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