Publication
Title
TV revenue sharing as a coordination device in sports
Author
Abstract
As sports clubs jointly produce contests, they cannot determine contest quality through their private talent investments. Sports leagues therefore try to coordinate talent investments to- wards the pro…t-maximizing contest quality. In this paper I analyze how revenue sharing mech- anisms may serve this goal when demand comes from hard-core club and neutral sports fans. Performance-based sharing turns out to be an ine¢ cient sharing rule for the cartel, although it is not harmful for social welfare. This ine¢ cient cartel behavior can be rationalized as the re- sult of bargaining with asymmetric outside options. Data from US and European sports leagues illustrate the theoretical …ndings.
Language
English
Source (series)
Research paper / UA, Faculty of Applied Economics ; 2010:5
Publication
Antwerp : UA, 2010
Volume/pages
26 p.
Full text (open access)
UAntwerpen
Faculty/Department
Research group
Publication type
Subject
Affiliation
Publications with a UAntwerp address
External links
Record
Identification
Creation 20.05.2010
Last edited 04.09.2013
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