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Type | Journal Article |
Scope | Discipline-based scholarship |
Title | The effect of marginal cost elasticity on competitive balance |
Organization Unit | |
Authors |
|
Item Subtype | Original Work |
Refereed | Yes |
Status | Published in final form |
Language |
|
Journal Title | Journal of Sports Economics |
Publisher | Sage Publications |
Geographical Reach | international |
ISSN | 1527-0025 |
Volume | 9 |
Number | 4 |
Page Range | 339 - 350 |
Date | 2008 |
Abstract Text | This article presents a model of talent investments where two clubs compete for prizes. Our model is based on a general class of cost functions with a constant elasticity of marginal costs with respect to investments. The analysis finds that reduced revenue sharing improves competitive balance. Furthermore, we show that a higher elasticity of marginal costs with respect to investments enhances competitive balance and simultaneously reduces the negative effect of revenue sharing on competitive balance. |
Free access at | DOI |
Digital Object Identifier | 10.1177/1527002507310959 |
Other Identification Number | merlin-id:7974 |
PDF File | Download from ZORA |
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