Bonus, effort, costs, market size and teams' performance

Papahristodoulou, Christos (2009): Bonus, effort, costs, market size and teams' performance.

Abstract

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
• Language: English
• Keywords: Teams; talents; effort; win bonus; win percentage; competitive balance; profits
• Subjects: L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports ; Gambling ; Restaurants ; Recreation ; Tourism; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D43 - Oligopoly and Other Forms of Market Imperfection; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics > M21 - Business Economics

References

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http://www.gazzeta.it, 2009-08-19