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The Win Maximization Model Reconsidered

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  • Stefan Késenne

    (University of Antwerp)

Abstract

In this article, the author reconsiders the so-called win maximization model, taking into account a number of criticisms that have been raised in the literature. One of the main issues is the application of the more relevant Cournot-Nash equilibrium, rather than the Walrasian fixed-supply model, to the European football industry with its flexible talent supply in an open international player market. At the same time, the hypothesis of a simple market clearing salary level has been replaced with the theory of efficiency wages to determine the salary level. Some important consequences of the application of the efficiency wage theory have been investigated.

Suggested Citation

  • Stefan Késenne, 2006. "The Win Maximization Model Reconsidered," Journal of Sports Economics, , vol. 7(4), pages 416-427, November.
    • Handle: RePEc:sae:jospec:v:7:y:2006:i:4:p:416-427
    DOI: 10.1177/1527002505279347
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    References listed on IDEAS

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    1. Ferguson, D G, , et al, 1991. "The Pricing of Sports Events: Do Teams Maximize Profit?," Journal of Industrial Economics, Wiley Blackwell, vol. 39(3), pages 297-310, March.
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    7. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September.
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    More about this item

    Keywords

    sports economics; professional team sports; efficiency wages;
    All these keywords.

    JEL classification:

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

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