The Sport League's Dilemma: Competitive Balance versus Incentives to Win

Article, Research, Preprint English OPEN
Palomino, Frederic ; Rigotti, Luca (2000)
  • Publisher: eScholarship, University of California
  • Subject: competitive balance | Sport league, Revenue sharing, competitive balance, incentives to win | Revenue sharing | sport;competition;incentives;broadcasting industry;revenue sharing | incentives to win | Sport league | sport; competition; incentives; broadcasting industry; revenue sharing
    • jel: jel:L19 | jel:L83
    acm: ComputingMilieux_PERSONALCOMPUTING | TheoryofComputation_MISCELLANEOUS | ComputingMilieux_MISCELLANEOUS

We analyze a dynamic model of strategic interaction between a professional sport league that organizes a tournament, the teams competing to win it, and the broadcasters paying for the rights to televise it. Teams and broadcasters maximize expected profits, while the lea... View more
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