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The Optimal Size of a Sports League

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  • Stefan Kesenne

    (University of Antwerp)

Abstract

In this contribution, based on a simple theoretical approach, we try to show that the number of teams that is optimal to a monopoly league, being a cartel of clubs and acting in the interest of the participating or insider clubs only, is smaller than the welfare optimal number of teams in a league, which also takes into account the interests of the spectators.

Suggested Citation

  • Stefan Kesenne, 2009. "The Optimal Size of a Sports League," International Journal of Sport Finance, Fitness Information Technology, vol. 4(4), pages 264-270, November.
  • Handle: RePEc:jsf:intjsf:v:4:y:2009:i:4:p:264-270
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    References listed on IDEAS

    as
    1. Roger G. Noll, 2003. "The Economics of Baseball Contraction," Journal of Sports Economics, , vol. 4(4), pages 367-388, November.
    2. Lawrence M. Kahn, 2007. "Sports League Expansion and Consumer Welfare," Journal of Sports Economics, , vol. 8(2), pages 115-138, May.
    3. Sonia Falconieri & Frédéric Palomino & József Sákovics, 2004. "Collective Versus Individual Sale of Television Rights in League Sports," Journal of the European Economic Association, MIT Press, vol. 2(5), pages 833-862, September.
    4. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
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    More about this item

    Keywords

    sports leagues; monopoly; welfare optimum;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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