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The Many Dimensions of Competitive Balance

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  • Allen R. Sanderson

    (The University of Chicago)

Abstract

Discussions of competitive imbalance use Major League Baseball as a focal point, and proposed remedies center on redistributions of revenues from well-heeled owners to financially strapped franchises. However, there are also many additional aspects in sports that do not involve allocations of economic resources directly but nevertheless affect outcomes and balance among competitors. All leagues and associations have to confront the fundamental issue of relative strengths between adversaries. To create some semblance of balance and ensure the integrity of play, they place constraints on the competitive process and respond to technological changes that threaten to disrupt the current environment, including the use of performance-enhancing inputs. Although we extol the virtues of natural athletes and level playing fields with regard to skill development, ensuring evenly matched contests, and comparing performances over time, there are arguably no consistent, objective standards we can employ. Imbalance is an inherent, intractable part of all competitions.

Suggested Citation

  • Allen R. Sanderson, 2002. "The Many Dimensions of Competitive Balance," Journal of Sports Economics, , vol. 3(2), pages 204-228, May.
  • Handle: RePEc:sae:jospec:v:3:y:2002:i:2:p:204-228
    DOI: 10.1177/152700250200300206
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    References listed on IDEAS

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    Cited by:

    1. Daniel A. Rascher & John Paul G. Solmes, 2007. "Do Fans Want Close Contests? A Test of the Uncertainty of Outcome Hypothesis in the National Basketball Association," International Journal of Sport Finance, Fitness Information Technology, vol. 2(3), pages 130-141, August.
    2. Dietl, Helmut M. & Franck, Egon & Hasan, Tariq & Lang, Markus, 2009. "Governance of professional sports leagues--Cooperatives versus contracts," International Review of Law and Economics, Elsevier, vol. 29(2), pages 127-137, June.
    3. Young Hoon Lee, 2009. "The Impact of Postseason Restructuring on the Competitive Balance and Fan Demand in Major League Baseball," Journal of Sports Economics, , vol. 10(3), pages 219-235, June.
    4. Booth, Ross, 2005. "Comparing Competitive Balance in Australian Sports Leagues: Does a Salary Cap and Player Draft Measure Up?," Sport Management Review, Elsevier, vol. 8(2), pages 119-143, September.
    5. Tim Pawlowski & Christoph Breuer & Arnd Hovemann, 2010. "Top Clubs’ Performance and the Competitive Situation in European Domestic Football Competitions," Journal of Sports Economics, , vol. 11(2), pages 186-202, April.
    6. John R. Crooker & Aju J. Fenn, 2007. "Sports Leagues and Parity When League Parity Generates Fan Enthusiasm," Journal of Sports Economics, , vol. 8(2), pages 139-164, May.
    7. Julio del Corral, 2009. "Competitive Balance and Match Uncertainty in Grand-Slam Tennis," Journal of Sports Economics, , vol. 10(6), pages 563-581, December.
    8. Pedro Garcia-del-Barrio & J. James Reade, 2022. "Does certainty on the winner diminish the interest in sport competitions? The case of formula one," Empirical Economics, Springer, vol. 63(2), pages 1059-1079, August.
    9. Neil Longley & Nelson J. Lacey, 2012. "The “Second†Season," Journal of Sports Economics, , vol. 13(5), pages 471-493, October.
    10. Halicioglu Ferda, 2009. "Research on the Prediction of the likely Winners of the Euro 2008 Football Tournament," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 5(3), pages 1-15, July.
    11. Markus LANG & Alexander RATHKE & Marco RUNKEL, 2010. "The Economic Consequences Of Foreigner Rules In National Sports Leagues," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 31, pages 47-64.
    12. Allen R. Sanderson & John J. Siegfried, 2003. "Thinking about Competitive Balance," Journal of Sports Economics, , vol. 4(4), pages 255-279, November.
    13. Pedro Garcia‐del‐Barrio & Pablo Agnese, 2023. "To comply or not to comply? How a UEFA wage‐to‐revenue requirement might affect the sport and managerial performance of soccer clubs," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 767-786, March.
    14. Wladimir Andreff, 2009. "Équilibre compétitif et contrainte budgétaire dans une ligue de sport professionnel," Revue économique, Presses de Sciences-Po, vol. 60(3), pages 591-633.
    15. Rodney Fort & Joel Maxcy, 2003. "“Competitive Balance in Sports Leagues: An Introductionâ€," Journal of Sports Economics, , vol. 4(2), pages 154-160, May.
    16. Ross Booth, 2005. "Comparing Competitive Balance In Australian Sports Leagues, The Afl, Nbl And Nrl: Does The Afl'S Team Salary Cap And Player Draft Measure Up?," Monash Economics Working Papers 02/05, Monash University, Department of Economics.
    17. Chris Judde & Ross Booth & Robert Brooks, 2013. "Second Place Is First of the Losers," Journal of Sports Economics, , vol. 14(4), pages 411-439, August.
    18. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    19. Ferda HALICIOGLU, 2005. "Forecasting the Professional Team Sporting Events: Evidence from Euro 2000 and 2004 Football Tournaments," Industrial Organization 0508001, University Library of Munich, Germany.
    20. Bulent Uyar & David Surdam, 2013. "Searching for On-Field Parity," Journal of Sports Economics, , vol. 14(5), pages 479-497, October.
    21. Bouvet, Patrick, 2011. "Que valent les compétitions sportives? Une nouvelle piste de réflexion," L'Actualité Economique, Société Canadienne de Science Economique, vol. 87(2), pages 205-222, juin.
    22. Garcia-del-Barrio, Pedro & Agnese, Pablo, 2021. "Does Compliance with Financial Fair Play Rules Improve the Football Clubs' Sport Performance and Their Chances to Reach UEFA Competitions?," IZA Discussion Papers 14474, Institute of Labor Economics (IZA).
    23. Helmut Dietl & Egon Franck & Martin Grossmann & Markus Lang, 2009. "Contest Theory and its Applications in Sports," Working Papers 0105, University of Zurich, Institute for Strategy and Business Economics (ISU).
    24. Boris Helleu & Christophe Durand, 2007. "The metropolisation of professional sport in Europe and North America: acomparative approach [La métropolisation du sport professionnel en Europe et en Amérique du Nord : une approche comparative]," Post-Print hal-02106720, HAL.

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