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Organisational Forms in Professional Cycling - Efficiency Issues of the UCI Pro Tour

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  • Rebeggiani, Luca
  • Tondani, David

Abstract

This paper gives a first economic approach to pro cycling and analyses the changes induced by the newly introduced UCI Pro Tour on the racing teams\u2019 behaviour. We develop an oligopolistic model starting from the well known Bertrand and Cournot frameworks to analyse if the actual setting of the UCI Pro Tour leads to a partially unmeant behaviour of the racing teams. In particular, we show that the blamed regional concentration of their race participation depends on a lack of incentives stemming from the licence assignation procedure. Our theoretical results are supported by empirical data concerning the performance of the racing teams in 2005. As a recommendation for future improvements, we derive from the model the need for a relegation system for racing teams.

Suggested Citation

  • Rebeggiani, Luca & Tondani, David, 2006. "Organisational Forms in Professional Cycling - Efficiency Issues of the UCI Pro Tour," Hannover Economic Papers (HEP) dp-345, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    • Handle: RePEc:han:dpaper:dp-345
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    File URL: http://diskussionspapiere.wiwi.uni-hannover.de/pdf_bib/dp-345.pdf
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    References listed on IDEAS

    as
    1. Wladimir Andreff, 2006. "New Perspectives in Sports Economics: A European View," Working Papers 0605, International Association of Sports Economists;North American Association of Sports Economists.
    2. Joachim Prinz, 2005. "The influence of money and body weight in professional road racing: Empirical evidence from the Tour de France," IASE Conference Papers 0523, International Association of Sports Economists.
    3. John J. Siegfried & Andrew Zimbalist, 2000. "The Economics of Sports Facilities and Their Communities," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 95-114, Summer.
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    5. Berentsen, Aleksander, 2002. "The economics of doping," European Journal of Political Economy, Elsevier, vol. 18(1), pages 109-127, March.
    6. Wladimir Andreff, 2006. "New Perspectives in Sports Economics: A European view," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00274643, HAL.
    7. Raul Caruso, 2005. "Asimmetrie negli incentivi, equilibrio competititvo e impegno agonistico: distorsioni in presenza di doping e combine," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 1(3), pages 13-38, Dicembre.
    8. Davide Tondani, 2005. "I ranking internazionali come rimedio alle asimmetrie informative negli sport individuali: il caso del ciclismo professionistico," Rivista di Diritto ed Economia dello Sport, Centro di diritto e business dello Sport, vol. 1(2), pages 93-117, Agosto.
    9. Wolfgang Maennig, 2002. "On the Economics of Doping and Corruption in International Sports," Journal of Sports Economics, , vol. 3(1), pages 61-89, February.
    10. Wladimir Andreff, 2006. "New Perspectives in Sports Economics: The European View," IASE Conference Papers 0601, International Association of Sports Economists.
    11. Benno Torgler, 2004. "?La Grande Boucle?: Determinants of Success at the Tour de France," CREMA Working Paper Series 2004-22, Center for Research in Economics, Management and the Arts (CREMA), revised May 2005.
    12. Wladimir Andreff, 2006. "New Perspectives in Sports Economics: A European view," Post-Print halshs-00274643, HAL.
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    Cited by:

    1. Ausloos, Marcel, 2020. "Rank–size law, financial inequality indices and gain concentrations by cyclist teams. The case of a multiple stage bicycle race, like Tour de France," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 540(C).

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    More about this item

    Keywords

    Sports economics; professional cycling; oligopolistic competition;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection

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    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. UCI ProTour in Wikipedia English
    2. UCI ProTour in Wikipedia Turkish

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