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

Article, Research, Preprint OPEN
Palomino, F.A.; Rigotti, L.;
  • Publisher: eScholarship, University of California
  • Subject: competitive balance | broadcasting industry | L19 - Other | Revenue sharing | competition | L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism | sport; competition; incentives; broadcasting industry; revenue sharing | incentives | Sport league, Revenue sharing, competitive balance, incentives to win | sport;competition;incentives;broadcasting industry;revenue sharing | incentives to win | sport | Sport league
    • jel: jel:L83 | jel:L19
    acm: TheoryofComputation_MISCELLANEOUS | ComputingMilieux_PERSONALCOMPUTING | 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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