Publication type: Article in scientific journal
Type of review: Peer review (publication)
Title: Spillovers in sports leagues with promotion and relegation
Authors: Dietl, Helmut
Grossmann, Martin
Hefti, Andreas
Lang, Markus
DOI: 10.1111/sjpe.12060
Published in: Scottish Journal of Political Economy
Volume(Issue): 62
Issue: 1
Page(s): 59
Pages to: 74
Issue Date: 2015
Publisher / Ed. Institution: Wiley
ISSN: 0036-9292
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.
Fulltext version: Published version
License (according to publishing contract): Licence according to publishing contract
Departement: School of Management and Law
Organisational Unit: Center for Economic Policy (FWP)
Appears in collections:Publikationen School of Management and Law

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