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The effect of gate revenue sharing on social welfare

Dietl, Helmut M; Lang, M (2008). The effect of gate revenue sharing on social welfare. Contemporary Economic Policy, 26(3):448-459.

Abstract

This paper provides a theoretical model of a team sports league based on contest theory and studies the welfare effect of gale revenue sharing. It derives two counterintuitive results. First, it challenges the "invariance proposition" by showing that revenue sharing reduces competitive balance and thus produces a more unbalanced league. Second, the paper concludes that a lower degree of competitive balance compared with the noncooperative league equilibrium yields a higher level of social welfare and club profits. Combining both results, it concludes that gate revenue sharing increases social welfare and club profits in our model.

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Business Administration
Dewey Decimal Classification:330 Economics
Scopus Subject Areas:Social Sciences & Humanities > General Business, Management and Accounting
Social Sciences & Humanities > Economics and Econometrics
Social Sciences & Humanities > Public Administration
Scope:Discipline-based scholarship (basic research)
Language:English
Date:July 2008
Deposited On:23 Jan 2009 16:33
Last Modified:02 Feb 2025 02:36
Publisher:Wiley-Blackwell
ISSN:1074-3529
OA Status:Closed
Publisher DOI:https://doi.org/10.1111/j.1465-7287.2007.00090.x
Official URL:http://www3.interscience.wiley.com/journal/120174660/abstract
Related URLs:http://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=33464449&loginpage=Login.asp&site=ehost-live
Other Identification Number:merlin-id:1038

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