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Dietl, H; Grossmann, M; Trinkner, U (2008). The effect of marginal cost elasticity on competitive balance. Journal of Sports Economics, 9(4):339-350.

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Abstract

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.

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
DDC:330 Economics
Language:English
Date:August 2008
Deposited On:23 Jan 2009 16:19
Last Modified:27 Nov 2013 21:53
Publisher:Sage Publications
ISSN:1527-0025
Publisher DOI:10.1177/1527002507310959
Citations:Web of Science®. Times Cited: 1
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Scopus®. Citation Count: 1

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