Pitfalls to Measuring Competitive Balance With Gini Coefficients

Joshua Utt and Rodney Fort
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Joshua Utt: Washington State University
Rodney Fort: Washington State University

Journal of Sports Economics, 2002, vol. 3, issue 4, 367-373

Abstract: League-winning percentage Gini coefficients have seen recent use as measurements of within-season competitive balance in Major League Baseball. The authors demonstrate that the zero-sum nature of league play renders past estimates inappropriate. Adjusted for league play, Gini coefficients reveal a much larger competitive balance problem than shown in previous estimates. However, additional complexities involving unbalanced schedules, interdivisional play, and now interleague play must be overcome before winning percentage Gini coefficients can give precise estimates of competitive balance. The authors suggest using the traditional measures of winning percentage standard deviations and their idealized values to analyze within-season competitive balance over time until these issues are overcome.

Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jospec:v:3:y:2002:i:4:p:367-373

DOI: 10.1177/152700250200300406

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