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Revenue sharing and competitive balance. Does it invariance proposition hold?

Stefan Kesenne

Working Papers from University of Antwerp, Faculty of Business and Economics

Abstract: This short paper, challenging the so-called invariance proposition, argues that, for a general n-team model with profit maximizing clubs and concave revenue functions, there are reasons to believe that revenue sharing can worsen the competitive balance among teams in a professional sports league. If clubs are win maximizers, revenue sharing improves the competitive balance.

Pages: 15 pages
New Economics Papers: this item is included in nep-spo
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ant:wpaper:2003021

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