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Contribution Details
| 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 |
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| 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 |
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