Despite still being younger than a decade, the theory of multisided markets has offered numerous valuable insights for the analysis of industries in which a supplier serves two distinct customer groups that are indirectly interrelated by externalities. Examples include payment systems, matching...

The National Collegiate Athletic Association (NCAA) acts as a cartel with monopsony power in the market for student-athletes. This paper models the demand for student-athlete labor using a Mill-Edgeworth-Marshall reciprocal demand model. The reciprocal demand translates into a supply of...

This paper develops a model of a professional sports league with network externalities by integrating the theory of two-sided markets into a contest model. In professional team sports, leagues function as a platform that enables sponsors to interact with fans. In these league-mediated...

Executive pay regulation is widely discussed as a measure to reduce financial mismanagement in corporations. We show that the professional team sports industry, the only industry with substantial experience in the regulation of compensation arrangements, provides valuable insights for the...

As sports clubs jointly produce contests, they cannot determine contest quality through their private talent investments. Sports leagues therefore try to coordinate talent investments towards the profit-maximizing contest quality. In this paper I analyze how revenue sharing mechanisms may serve...

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...

This paper outlines and compares the organizational structure of major sports leagues, explores the reasoning behind their formation, and derives implications for salary caps in European football. To understand why sports leagues have developed a specific organizational structure, one must take...

The competition rules and policy framework of the European Union represents an important institutional restriction for doing sports business. Driven by the courts, the 2007 overhaul of the approach and methodology has increased the scope of competition policy towards sports associations and...

In this note I estimate and compare Tullock- and Hirshleifer-style contest success functions (CSFs) using data from the 4 major American sports leagues. I ?nd that Tullock CSFs based on relative efforts fit the data better than Hirshleifer CSFs based on absolute effort differences.

This paper provides an overview of techniques that can be used to estimate the economic impact of stadiums, events, championships, and franchises on local economies. Utilizing data from National Collegiate Athletic Association championships, this paper highlights the potential problems that can...