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Competitive Balance Measures in Sports Leagues: The Effects of Variation in Season Length

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  • P. Dorian Owen

    (Department of Economics, University of Otago, New Zealand)

  • Nicholas King

    (Department of Economics, University of Otago, New Zealand)

Abstract

Appropriate measurement of competitive balance is a cornerstone of the economic analysis of professional sports leagues. We examine the distributional properties of the ratio of standard deviations (RSD) of points percentages, the most widely used measure of competitive balance in the sports economics literature, in comparison with other standard-deviation-based measures. Simulation methods are used to evaluate the effects of changes in season length on the distributions of competitive balance measures for different distributions of the strengths of teams in a league. The popular RSD measure performs as expected only in cases of perfect balance; if there is imbalance in team strengths, its distribution is very sensitive to changes in season length. This has important implications for comparisons of competitive balance for different sports leagues with different numbers of teams and/or games played.

Suggested Citation

  • P. Dorian Owen & Nicholas King, 2013. "Competitive Balance Measures in Sports Leagues: The Effects of Variation in Season Length," Working Papers 1309, University of Otago, Department of Economics, revised Jul 2013.
    • Handle: RePEc:otg:wpaper:1309
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    Cited by:

    1. Doria Matthew & Nalebuff Barry, 2021. "Measuring competitive balance in sports," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 17(1), pages 29-46, March.
    2. Young Hoon Lee & Yongdai Kim & Sara Kim, 2019. "A Bias-Corrected Estimator of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 20(4), pages 479-508, May.
    3. Sang Hun Sung & Doo-Seung Hong & Soo Young Sul, 2020. "How We Can Enhance Spectator Attendance for the Sustainable Development of Sport in the Era of Uncertainty: A Re-Examination of Competitive Balance," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    4. Lee Scyoc & M. Kevin McGee, 2016. "Testing for competitive balance," Empirical Economics, Springer, vol. 50(3), pages 1029-1043, May.
    5. Jones, Calvin & Jordan, Declan, 2014. "Competitiveness in Soccer Leagues: An ordinal time series approach with evidence from the Premier League 1993 to 2014," MPRA Paper 61193, University Library of Munich, Germany, revised Dec 2014.
    6. Avila-Cano, Antonio & Owen, P. Dorian & Triguero-Ruiz, Francisco, 2023. "Measuring competitive balance in sports leagues that award bonus points, with an application to rugby union," European Journal of Operational Research, Elsevier, vol. 309(2), pages 939-952.
    7. Young Hoon Lee & Yongdai Kim & Sara Kim, 2018. "Unbiased Estimation of Competitive Balance in Sports Leagues with Unbalanced Schedules," Working Papers 1801, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy).
    8. Hayley Jang & Young Hoon Lee & Rodney Fort, 2019. "Winning In Professional Team Sports: Historical Moments," Economic Inquiry, Western Economic Association International, vol. 57(1), pages 103-120, January.
    9. Gábor Rappai & Diána Ivett Fűrész, 2024. "Domestic Competitive Imbalance as the “Price†of Surprise in the Champions League," Journal of Sports Economics, , vol. 25(2), pages 231-256, February.
    10. E. Woodrow Eckard, 2017. "The Uncertainty-of-Outcome Hypothesis and the Industrial Organization of Sports Leagues," Journal of Sports Economics, , vol. 18(3), pages 298-317, April.
    11. Dorian Owen, 2014. "Measurement of competitive balance and uncertainty of outcome," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 3, pages 41-59, Edward Elgar Publishing.
    12. Daniel Read & Aaron C.T. Smith & James Skinner, 2021. "A Comparative Analysis of Competitive Balance Between a Closed and an Open League in Rugby League," Journal of Sports Economics, , vol. 22(8), pages 871-892, December.
    13. repec:beo:swcetp:23-12 is not listed on IDEAS
    14. Fort, Rodney & Maxcy, Joel & Diehl, Mark, 2016. "Uncertainty by regulation: Rottenberg׳s invariance principle," Research in Economics, Elsevier, vol. 70(3), pages 454-467.
    15. Dejan Trifunovi? & Vito Pipitone, 0000. "Welfare Maximizing Competitive Balance: the Evidence from Top European Football leagues," Proceedings of International Academic Conferences 11113139, International Institute of Social and Economic Sciences.
    16. Hojun Sung & Brian M. Mills & Younghoon Lee, 2022. "Moments of Competitive Balance in Major League Soccer," Journal of Sports Economics, , vol. 23(3), pages 329-354, April.
    17. Franziska Prockl & Dirk Semmelroth, 2018. "Perception Versus Reality - Competitive Balance In Major League Soccer From 1996 – 2016," Working Papers Dissertations 36, Paderborn University, Faculty of Business Administration and Economics.
    18. Damian S. Damianov & Shane Sanders & Anil Yildizparlak, 2018. "Asymmetric endogenous prize contests," Theory and Decision, Springer, vol. 85(3), pages 435-453, October.
    19. Dejan Trifunović & Bojan Ristić, 2023. "The Impact Of The Horizontal Distribution Of Media Rights Revenues In Sports Leagues On Competitive Balance," Shaping Post-COVID World – Challenges for Economic Theory and Policy, in: Aleksandra Praščević & Miomir Jakšić & Mihail Arandarenko & Dejan Trifunović & Milutin Ješić (ed.),Shaping Post-COVID World – Challenges for Economic Theory and Policy, chapter 12, pages 263-285, Faculty of Economics and Business, University of Belgrade.
    20. Girish Ramchandani & Daniel Plumley & Adam Davis & Rob Wilson, 2023. "A Review of Competitive Balance in European Football Leagues before and after Financial Fair Play Regulations," Sustainability, MDPI, vol. 15(5), pages 1-15, February.
    21. Dorian Owen & Caitlin Owen, 2017. "Simulation Evidence on Herfindahl-Hirschman Indices as Measures of Competitive Balance," Working Papers 1715, University of Otago, Department of Economics, revised Dec 2017.
    22. Budzinski, Oliver & Kunz-Kaltenhäuser, Philipp, 2020. "Promoting or restricting competition? - The 50plus1-rule in German football," Ilmenau Economics Discussion Papers 141, Ilmenau University of Technology, Institute of Economics.
    23. Murat Çiftçi, 2015. "Regional Inequality of Sport Facilities in Turkey," Eurasian Academy Of Sciences Social Sciences Journal, Eurasian Academy Of Sciences, vol. 4(4), pages 49-66, July.

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    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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