Grossmann, Martin; Dietl, Helmut M.; Trinkner, Urs - In: Journal of Sports Economics 9 (2008) 4, pp. 339-350
This article presents a model of talent investments where two clubs compete for prizes. Our model is based on a general class of cost functions with a constant elasticity of marginal costs with respect to investments. The analysis finds that reduced revenue sharing improves competitive balance....