This paper develops a contest model to compare social welfare in homogeneous leagues in which all clubs maximize identical objective functions with mixed leagues in which clubs maximize different objective functions. We show that homogeneous leagues in which all clubs are profit-maximizers...

This paper develops a contest model to compare social welfare in homogeneous leagues in which all clubs maximize identical objective functions with mixed leagues in which clubs maximize different objective functions. We show that homogeneous leagues in which all clubs are profit-maximizers...

This paper revisits a particular norm of behaviour underlying the well known model of kinked demand. We show that under some standard regularity conditions this norm of behaviour sustains the efficient outcome in all symmetric games.

We introduce here the first volume of Handbook of Game Theory and Industrial Organization: Theory, by L. C. Corchón and M. A. Marini (eds.), Edward Elgar, Cheltenam, UK and Northampton, MA, by describing its main aim and its basic structure.

Service sports include two-player contests such as volleyball, badminton, and squash. We analyze four rules, including the Standard Rule (SR), in which a player continues to serve until he or she loses. The Catch-Up Rule (CR) gives the serve to the player who has lost the previous point—as...

This paper provides a theoretical model of a team sports league based on contest theory and studies the welfare effect of gate revenue-sharing. It derives two counter-intuitive results. First, it challenges the "invariance proposition" by showing that revenue-sharing reduces competitive balance...

Increasing financial disparity and spiralling wages in European football have triggered a debate about the introduction of salary caps. This paper provides a theoretical model of a team sports leagues and studies the welfare effect of salary caps. It shows that salary caps will increase...

This paper provides a theoretical model of a team sports league based on contest theory and studies the welfare effect of gate revenue-sharing. It derives two counter-intuitive results. First, it challenges the "invariance proposition" by showing that revenue-sharing reduces competitive balance...

Increasing financial disparity and spiralling wages in European football have triggered a debate about the introduction of salary caps. This paper provides a theoretical model of a team sports leagues and studies the welfare effect of salary caps. It shows that salary caps will increase...

Professional sports leagues have witnessed the appearance of so-called "sugar daddies" - people who invest enormous amounts of money into clubs and become their owners. This paper presents a contest model of a professional sports league that incorporates this phenomenon. We analyze how the...