Title
Optimal gate revenue sharing in sports leagues
Author
Faculty/Department
Faculty of Applied Economics
Publication type
report
Publication
Antwerp :UA, [*]
Subject
Economics
Source (series)
Research paper / UA, Faculty of Applied Economics ; 2011:015
Volume/pages
23 p.,
Carrier
E
Target language
English (eng)
Affiliation
University of Antwerp
Abstract
Sports leagues constitute one of the few examples of legally operating cartels. In this paper I examine how gate revenue sharing may serve to coordinate talent investments within these cartels. I show that sharing revenues has the potential to raise cartel pro…ts, because it decreases the incentive to invest in playing talent. Leagues consisting of teams with heterogeneous local markets should share less revenues to maximize pro…ts, whereas homogeneous teams should share more.
Full text (open access)
https://repository.uantwerpen.be/docman/irua/acdd54/d2c7beaf.pdf
Handle