Abstract:
In this paper we analyze and compare the behavior of sports clubs in a profit and a win maximization league if the decisions on the optimal ticket price and the talent demand have to be made simultaneously. From this 2-decision-variable model, a few interesting conclusions, regarding the impact of the player salary level or a stadium capacity constraint on the ticket price, can be drawn. Also, some important policy implications are considered such as imposing maximum ticket prices, imposing salary caps and granting a government subsidy.
Ordering information: This journal article can be ordered from Dr. Mary H. Lesser, Department of Economics, Iona College, New Rochelle, NY 10801-1890 http://www.iona.edu/eea/publications/subandmem.htm