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The search for optimal competitive balance in formula one

Author

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  • 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, Münster Center for Economic Policy (MEP).
    • Handle: RePEc:zbw:cawmdp:38
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    References listed on IDEAS

    as
    1. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, 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.
    3. Langen, Martin & Krauskopf, Thomas, 2010. "The election of a world champion," CAWM Discussion Papers 39, University of Münster, Münster Center for Economic Policy (MEP).
    4. Joshua Utt & Rodney Fort, 2002. "Pitfalls to Measuring Competitive Balance With Gini Coefficients," Journal of Sports Economics, , vol. 3(4), pages 367-373, November.
    5. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
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    Cited by:

    1. Dominik Schreyer & Benno Torgler, 2018. "On the Role of Race Outcome Uncertainty in the TV Demand for Formula 1 Grands Prix," Journal of Sports Economics, , vol. 19(2), pages 211-229, February.
    2. Chris Judde & Ross Booth & Robert Brooks, 2013. "Second Place Is First of the Losers," Journal of Sports Economics, , vol. 14(4), pages 411-439, August.
    3. Oliver Budzinski & Arne Feddersen, 2020. "Measuring competitive balance in Formula One racing," Chapters, in: Plácido Rodríguez & Stefan Kesenne & Brad R. Humphreys (ed.), Outcome Uncertainty in Sporting Events, chapter 1, pages 5-26, Edward Elgar Publishing.

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    More about this item

    Keywords

    Sports Economics; Formula 1; competitive balance; attractiveness of sports;
    All these keywords.

    JEL classification:

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

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