Atkinson, Scott E.; Stanley, Linda R.; Tschirhart, John - In: RAND Journal of Economics 19 (1988) 1, pp. 27-43
We consider a professional sports league's use of a well-defined incentive mechanism, revenue sharing, to encourage the desired behavior of teams in the league. The incentive mechanism works by internalizing externalities that arise across agents (the team owners). We find revenue sharing to be...