In 2002 the leading European football clubs reacted to the increasing player salaries by signing a voluntary agreement to limit player salaries to 70% of revenues. We analyze under which conditions a voluntary salary cap agreement is self-enforcing. Based on a simple model of a league with two...

Based on the competing theories of superstar formation proposed by Rosen (1981) and Adler (1985) it is controversial if firsthand observable talent or other factors like past consumption and popularity influence stardom. This article investigates the emergence of superstars in German soccer. We...

Professional football clubs earn most of their revenues from four sources: sale of broadcasting rights, matchday revenues, merchandising, and sponsorship. The relative importance of these sources differs among clubs and leagues. Economists often argue that the ability of professional football...

In this paper we compare European and North American sports leagues from the perspective of platform organization. We find that European leagues can be characterized as open, not only in the sense of promotion and relegation, but also in the sense of attenuated/dispersed property rights and free...

In this paper we compare European and North American sports leagues from the perspective of platform organization. We find that European leagues can be characterized as open, not only in the sense of promotion and relegation, but also in the sense of attenuated/dispersed property rights and free...

Professional football clubs earn most of their revenues from four sources: sale of broadcasting rights, matchday revenues, merchandising, and sponsorship. The relative importance of these sources differs among clubs and leagues. Economists often argue that the ability of professional football...

In spite of Microsoft’s quasi monopoly position in the market for operating systems Linux has succeeded to become a serious competitor of Microsoft Windows. From an economic standpoint this fact raises some puzzles. In this paper we focus on the development and production of a complex team...