Title
Media revenue sharing as a coordination device in sports leagues Media revenue sharing as a coordination device in sports leagues
Author
Faculty/Department
Faculty of Applied Economics
Publication type
article
Publication
Amsterdam ,
Subject
Economics
Source (journal)
International journal of industrial organization. - Amsterdam
Volume/pages
30(2012) :2 , p. 153-163
ISSN
0167-7187
ISI
000302515200003
Carrier
E
Target language
English (eng)
Full text (Publishers DOI)
Affiliation
University of Antwerp
Abstract
Because sports clubs jointly produce sports competitions, the quality of these competitions is determined by the talent investments of all clubs involved in them. Operating as legal cartels, sports leagues may try to coordinate talent investments in order to maximize profitability. In this paper I analyze the ways in which sharing mechanisms for collective media revenues may serve this goal when demand comes from differentiated consumers. Performance-based sharing turns out to be an inefficient sharing mechanism for the league. Such inefficient cartel behavior may be rationalized as the result of bargaining with asymmetric outside options. (C) 2011 Elsevier B.V. All rights reserved.
E-info
https://repository.uantwerpen.be/docman/iruaauth/afe12a/4441719.pdf
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