Some Conceptual Foundations: A Primer on the Economic Structure of Professional Sport

Neil Longley
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Neil Longley: University of Massachusetts

Chapter Chapter 2 in An Absence of Competition, 2013, pp 9-21 from Springer

Abstract: Abstract The notion of competition is fundamentally at the core of a capitalist society. When firms actively compete against each other in a market, several social benefits are generated. In general, competition tends to lower costs, reduces production inefficiency, and leads to a more efficient allocation of societal resources. In other words, resources flow to their most productive uses. Competition is a dynamic process in that it is inherently forward looking, leading to innovation and creativity amongst producers. These benefits ultimately flow through to consumers, who enjoy a more wide range of product choices, higher-quality products, and lower prices. In general, the lower the degree of competition in a given market, the less present are these array of benefits—all else equal, less competitive markets can result in greater production inefficiencies, reduced innovation, fewer product choices, and higher prices for consumers, with the latter directly resulting in higher profits for producers.

Keywords: Revenue Sharing; Professional Sport; Sport League; English Premier League; Spectator Sport (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:semchp:978-1-4614-9485-0_2

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DOI: 10.1007/978-1-4614-9485-0_2

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