Spillovers in Sports Leagues with Promotion and Relegation
Bibliographic Data
| ID | 10493283 |
|---|---|
| Authors | Helmut Dietl (0000-0003-3134-6891, University of Zurich, corresponding author), Martin Grossmann (0000-0002-8705-1075, University of Zurich), Andreas Hefti (0000-0001-9981-7640, University of Zurich), Markus Lang (0000-0002-6837-790X, University of Zurich) |
| Year | 2015 |
| Volume | 62 |
| Issue | 1 |
| Pages | 59-74 |
| Publication date | 2015-01-13 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Scottish Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0036-9292 • E-ISSN: 1467-9485 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/sjpe.12060 |
| OpenAlex | W2075405408 |
| Language | EN |
| Citations received | 3 |
| References cited | 23 |
This paper analyzes spillover effects in sports leagues that are embedded in a system of promotion and relegation. Based on a contest model of a professional sports league with a top division and a second division, we show that league prizes and club efficiencies have opposing effects; while a stronger second division that offers a higher league prize leads to a more balanced top division, the opposite is true for a stronger second division whose clubs become more cost efficient. Moreover, we demonstrate that a higher second‐division prize induces a lower investment level, but higher profits in the top division, while higher club efficiency in the second division leads to both a lower investment level and lower profits in the top division. These results have important policy implications for the organization of sports leagues
Business · Club · CONTEST · Division (mathematics · Division of labour · Economics · Investment (military · Labour economics · League · Market economy · Microeconomics · Political science · Promotion (chess · Spillover effect · Gambling Behavior and Treatments · Marketing · Mathematics · Sport and Mega-Event Impacts · Sports Analytics and Performance
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Contest success functions
The Economic Design of Sporting Contests
Demand for Sport
Comparative statics for aggregative games the strong concavity case
Conflict and rent-seeking success functions
Theory of the Beautiful Game
Scottish Journal of Political Economy
Overinvestment in Team Sports Leagues
The Baseball Players' Labor Market
Rank-Order Tournaments as Optimum Labor Contracts
| Unique citing works | 3 |
|---|---|
| Citations per year | 0.27 |
| Citation span | 2015 - 2025 (11) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 3 |