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The adjusted churn: an index of competitive balance for sports leagues based on changes in team standings over time

Author

Listed:
  • Daniel Mizak

    (Frostburg State University)

  • Anthony Stair

    (Frostburg State University)

  • John Neral

    (Frostburg State University)

Abstract

This paper introduces an index called the adjusted churn, designed to measure competitive balance in sports leagues based on changes in team standings over time. This is a simple yet powerful index that varies between zero and one. A value of zero indicates no change in league standings from year to year and therefore minimal competitive balance. A value of one indicates the maximum possible turnover in league standings from year to year and therefore a high level of competitive balance. Application of this index to Major League Baseball suggests that there has been a significant decline in competitive balance in MLB since the 1990s with the most severe decline occurring in the American League. This index also indicates minimal competitive balance for the American League Eastern Division of MLB from 1998 to 2003

Suggested Citation

  • Daniel Mizak & Anthony Stair & John Neral, 2007. "The adjusted churn: an index of competitive balance for sports leagues based on changes in team standings over time," Economics Bulletin, AccessEcon, vol. 26(3), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07z00005
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    File URL: http://www.accessecon.com/pubs/EB/2007/Volume26/EB-07Z00005A.pdf
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    References listed on IDEAS

    as
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    8. Martin Schmidt & David Berri, 2002. "Competitive Balance and Market Size in Major League Baseball: A Response to Baseball's Blue Ribbon Panel," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 21(1), pages 41-54, August.
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    Cited by:

    1. Sang Hun Sung & Doo-Seung Hong & Soo Young Sul, 2020. "How We Can Enhance Spectator Attendance for the Sustainable Development of Sport in the Era of Uncertainty: A Re-Examination of Competitive Balance," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    2. Richard Evans, 2014. "A review of measures of competitive balance in the ‘analysis of competitive balance’ literature," Birkbeck Sports Business Centre Working Papers 9, Birkbeck College, Department of Management.
    3. András Gyimesi, 2020. "League Ranking Mobility Affects Attendance: Evidence From European Soccer Leagues," Journal of Sports Economics, , vol. 21(8), pages 808-828, December.
    4. Oliver Budzinski & Arne Feddersen, 2020. "Measuring competitive balance in Formula One racing," Chapters, in: Plácido Rodríguez & Stefan Kesenne & Brad R. Humphreys (ed.), Outcome Uncertainty in Sporting Events, chapter 1, pages 5-26, Edward Elgar Publishing.
    5. Dorian Owen, 2014. "Measurement of competitive balance and uncertainty of outcome," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 3, pages 41-59, Edward Elgar Publishing.
    6. Trandel Gregory A & Maxcy Joel G, 2011. "Adjusting Winning-Percentage Standard Deviations and a Measure of Competitive Balance for Home Advantage," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 7(1), pages 1-17, January.
    7. Jason P. Berkowitz & Craig A. Depken II & Dennis P. Wilson, 2011. "When Going in Circles is Going Backward: Outcome Uncertainty in NASCAR," Journal of Sports Economics, , vol. 12(3), pages 253-283, June.
    8. Gyimesi, András, 2021. "Hosszú távú versenyegyensúly egy csapatsportliga közgazdasági modelljében [Long-term competitive balance in an economic model of a team sports league]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(6), pages 585-616.
    9. Murat Çiftçi, 2015. "Regional Inequality of Sport Facilities in Turkey," Eurasian Academy Of Sciences Social Sciences Journal, Eurasian Academy Of Sciences, vol. 4(4), pages 49-66, July.

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