I investigate whether the removal of the reserve clause in professional baseball has affected the competitive nature of the industry in the context of whether teams are actively attempting to monopolize in high- valued inputs. It is possible that a very few teams could purchase all of the best...

We analyze a dynamic model of strategic interaction between a professional sport league that organizes a tournament, the teams competing to win it, and the broadcasters paying for the rights to televise it. Teams and broadcasters maximize expected profits, while the league's objective may be...

The point of departure in this paper is the diagnosis of Hoehn and Szymanski (1999) that the interlocking system of European football creates an unbalanced system. To secure competitive balance at both the European and the national level, they recommend to reform European football into a closed...

We develop a model of a representative professional sports club that has the option of adopting one of two different forms of revenue sharing: traditional revenue sharing and central pool type revenue sharing. To adopt either form of revenue sharing, the league requires that a majority of clubs...

Paper is under revision, pdf is not available. Competitive balance is what makes the sport becoming an attractive event. Contrary to other industries, a reduction in competition and a hypothetically dominant position could mean the end of the championship. If there is only one team, the...

The creation of electricity markets has raised the fundamental question as to whether markets provide the right incentives for the provision of the reserves needed to maintain system reliability, or whether some form of regulation is needed. In some states in the US, electricity retailers have...

Recent developments in information technology (IT) have resulted in the collection of a vast amount of customer specific data. As the IT advances the quality of such information improves. We analyze a sequential spatial model of oligopolistic third degree price discrimination where the firms use...

This paper analyzes the role of communication between firms in an infinitely repeated Bertrand game in which firms receive an imperfect private signal of a common value i.i.d. demand shock. It is shown that firms can use stochastic, inter-temporal market sharing as a perfect substitute for...

We investigate how the endogenous acquisition of information, of a certain quality level, on consumers' willingness to pay (location) affects the equilibrium prices and welfare in a spatial price discrimination model. By varying the information quality we are able to obtain the equilibrium in...

In this paper I intend to model a firm decision of entrance into a profitable fashion market where fashion results from the existence of positive interdependence between buyers utility functions. I conclude theoretically that i) when incumbent firm has an aggressive strategy it sets a marketing...