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Uncertainty of outcome and competitive balance: impact, causes and cures

In: A Modern Guide to Sports Economics

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  • Stefan Kesenne

Abstract

There are few variables that show up more often in the literature on sports economics than competitive balance (CB); but, at the same time, few other variables generate more discussion and disagreement among sports economists. What exactly is meant by CB? The concept is ill defined both theoretically and empirically (see Kringstad and Gerrard, 2007). As indicated by Sanderson (2002), CB turns out to have many dimensions, and each dimension should be considered in one way or another. However, in this contribution, as in most approaches of CB, we refer to deviation in performances of teams, caused mainly by budget differences among teams, and the deviations in playing talent teams can afford to pay.

Suggested Citation

  • Stefan Kesenne, 2021. "Uncertainty of outcome and competitive balance: impact, causes and cures," Chapters, in: Ruud H. Koning & Stefan Kesenne (ed.), A Modern Guide to Sports Economics, chapter 6, pages 70-88, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:19238_6
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    Economics and Finance;

    Statistics

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