Papahristodoulou, Christos (2009): Bonus, effort, costs, market size and teams' performance.
Download (428Kb) | Preview
This paper examines the effects of a win bonus, effort, costs and team size, on the demand for talented players, the win percentage and the profits of small and big teams. Teams play a Cournot game, under the following objective functions: (i) teams maximize profits, (ii) teams maximize win percentage, (iii) the small team maximizes profit and the big win percentage, and (iv) vice versa. The effects are based on a priori selected parameter values and bounds, as well as from optimal solutions of non-linear programs, by maximizing anyone of the four win percentage formulae, derived from the respective Cournot reaction functions.
|Item Type:||MPRA Paper|
|Original Title:||Bonus, effort, costs, market size and teams' performance|
|Keywords:||Teams; talents; effort; win bonus; win percentage; competitive balance; profits|
|Subjects:||L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports; Gambling; Recreation; Tourism
D - Microeconomics > D4 - Market Structure and Pricing > D43 - Oligopoly and Other Forms of Market Imperfection
M - Business Administration and Business Economics; Marketing; Accounting > M2 - Business Economics > M21 - Business Economics
|Depositing User:||Christos Papahristodoulou|
|Date Deposited:||28. Aug 2009 18:56|
|Last Modified:||12. Feb 2013 20:21|
Dietl, H., M. Lang & A Rathke (2009), The Combined Effect of Salary Restrictions and Revenue Sharing on Club Profits, Player Salaries, and Competitive Balance, Working Paper No. 102, Institute for Strategy and Business Economics, University of Zurich.
Franck, E. & S. Nüesch (2007), Wage dispersion and team performance : an empirical panel analysis, Working Paper No. 73, Institute for Strategy and Business Economics, University of Zurich.
Goossens, K. (2007), National Dominance in European Football Leagues, Working Paper, Economics Department, University of Antwerp.
Kesenne, S., (2007), Does a win bonus help to increase profit or wins in professional team sports? Working Paper, Economics Department, University of Antwerp.
Papahristodoulou, C. (2008), Wage Differences, Bonus and Team Performances: A parametric non-linear integer programming model, MPRA Paper No 8719, downloadable at: http://mpra.ub.uni-muenchen.de/8719/
Quirk, J. & R. Fort (1992), Pay Dirt, the business of professional team sports, Princeton, Princeton University Press.
Quirk, J. & R. Fort (1995), Cross-subsidization, Incentive, and Outcomes in Professional Team Sports Leagues, Journal of Economic Literature, Vol. 33, No. 3, pp 1265-99.
Szymanski, S. & S. Kesenne (2004), Competitive balance and gate revenue sharing in team sports, The Journal of Industrial Economics, Vol. 52, pp 165-77.