Simulation evidence on Herfindahl-Hirschman measures of competitive balance in professional sports leagues

Author(s):  
P. Dorian Owen ◽  
Caitlin A. Owen
2021 ◽  
pp. 152700252110595
Author(s):  
Marco Runkel

Competitive balance regulation is more widespread in North American than in Europan sports leagues. The present paper addresses the question whether this observation can be explained with the help of differences in the degree of player mobility. Using an extended version of the workhorse contest model of sports leagues, the paper shows that the answer depends on the kind of competitive balance regulation. While player mobility may help to explain the difference with respect to salary regulation (e.g., salary caps), the choice of revenue sharing schemes turns out to be independent of player mobility.


2016 ◽  
Vol 18 (3) ◽  
pp. 253-270 ◽  
Author(s):  
Liam J. A. Lenten

The presence of asymmetry in the relation between attendances and competitive balance in the Australian Football League is tested, over the period 1945-2010. The results from the well-specified structural time-series model validate the uncertainty of outcome hypothesis, and the null of no asymmetry is rejected easily in the structural innovations of the series, although it is not rejected in the levels. The latter finding substantiates the reversibility (without net loss of demand) of league revenue-sharing and labor market policies that influence demand in professional sports leagues.


2005 ◽  
Vol 23 (4) ◽  
pp. 439-445 ◽  
Author(s):  
David Forrest ◽  
James Beaumont ◽  
John Goddard ◽  
Robert Simmons

Author(s):  
David George Surdam

This chapter examines the economics of antitrust, with particular emphasis on how antitrust law affects professional team sports. In the late 1800s, Americans worried about the growing concentration of power in the hands of a few producers such as Standard Oil, American Tobacco, and other large firms that consolidated their holds over industries by merging and acquiring other companies. Other industrial leaders sought to fix prices above those obtained under competition. The Sherman Antitrust Act, enacted in 1890, contains provisions addressing “contract,” “conspiracy,” and “trade and commerce.” This chapter first considers how courts applied the Sherman Act to cases involving professional team sports before discussing the characteristics of professional sports leagues, how owners of professional sports teams reported profits and losses, the issue of player salaries and exploitation, and competitive balance and revenue sharing in professional leagues. It also describes franchise relocation and expansion and how television created demand in sports.


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