The Sport League's Dilemma: Competitive Balance versus Incentives to Win
Article, Research, Preprint
- Publisher: eScholarship, University of California
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
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...