Title: Spillovers in sports leagues with promotion and relegation
Authors : Dietl, Helmut
Grossmann, Martin
Hefti, Andreas
Lang, Markus
Published in : Scottish journal of political economy
Volume(Issue) : 62
Issue : 1
Pages : 59
Pages to: 74
Publisher / Ed. Institution : Wiley
Issue Date: 2015
License (according to publishing contract) : Licence according to publishing contract
Type of review: Peer review (publication)
Language : English
Subjects : Europa; Fussball; Spillover effect; Spillover-Effekt; Wettbewerb
Subject (DDC) : 338: Production
700: The arts and entertainment
Abstract: 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.
Departement: School of Management and Law
Organisational Unit: Center for Economic Policy (FWP)
Publication type: Article in scientific journal
DOI : 10.1111/sjpe.12060
ISSN: 0036-9292
URI: https://digitalcollection.zhaw.ch/handle/11475/9936
Appears in Collections:Publikationen School of Management and Law

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