Contemporary Research in Sports Economics

DOI: 10.3726/978-3-653-04103-3/19

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Competitive Balance and Attention Level Effects: Theoretical Considerations and Preliminary Evidence

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Oliver Budzinski

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Abstract: We try to better understand possible reasons for deviations between statistically-measured competitive balance (CB) and perceived CB. Moreover, we suggest answers to the following questions: are there specific dimensions of CB that are perceived to be significantly less balanced in the Danish Superligaen compared to the other two leagues? Are there objective measures that "confirm" the fans' perception or does OCB in general deviate from PCB?

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Cited by 18 publications

References 17 publications

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Are Restrictions of Competition by Sports Associations Horizontal or Vertical in Nature?

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2014

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Abstract:In this paper, we discuss from an economic perspective two alternative views of restrictions of competition by sports associations. The horizontal approach views such restrictions as an agreement among the participants of a sports league with the sports association merely representing an organization executing the horizontal cooperation. In contrast, the vertical approach views the sports association as being a dominant upstream firm enjoying a monopoly position on the market stage for competition organizing services, an important input for the actual product -the sports game. Taking the recent financial fair play (FFP) initiative by UEFA (the Union of European Football Associations) as an example, we demonstrate that the different views lead to different assessments of restrictive effects and, thus, matter for competition policy decisions. The economic story of the potential restrictive effect of FFP on players' and player agents' income may fit more plausibly to the horizontal approach, whereas the potentially anticompetitive foreclosure and deterrence effects of FFP may be economically more soundly reasoned by taking the vertical view.

Are Restrictions of Competition by Sports Associations Horizontal or Vertical in Nature?

¹

,

²

2014

View full text Add to dashboard Cite

Abstract:In this paper, we discuss from an economic perspective two alternative views of restrictions of competition by sports associations. The horizontal approach views such restrictions as an agreement among the participants of a sports league with the sports association merely representing an organization executing the horizontal cooperation. In contrast, the vertical approach views the sports association as being a dominant upstream firm enjoying a monopoly position on the market stage for competition organizing services, an important input for the actual product -the sports game. Taking the recent financial fair play (FFP) initiative by UEFA (the Union of European Football Associations) as an example, we demonstrate that the different views lead to different assessments of restrictive effects and, thus, matter for competition policy decisions. The economic story of the potential restrictive effect of FFP on players' and player agents' income may fit more plausibly to the horizontal approach, whereas the potentially anticompetitive foreclosure and deterrence effects of FFP may be economically more soundly reasoned by taking the vertical view.

Bemerkungen Zur konomischen Analyse Von Sicherheit (A Comment to the Economics of Security)

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2014

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The Behavioural Economics of Competitive Balance: Implications for League Policy and Championship Management

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2014

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Abstract:The theory of competitive balance represents one of the core concepts of sports economics. Based upon an international research project analyzing the perception of competitive balance by consumers (Pawlowski 2013a(Pawlowski , 2013bPawlowski & Budzinski 2013, we argue in this paper that behavioural explanations of competitive balance may offer additional insights for selected sports economics and, in particular, sports policy problems, complementing the standard view on competitive balance. After summarizing the standard analysis of competitive balance in sports economics concerning theory, policy and empirical record in chapter 2, we report the main theoretical and empirical insights from our research project (chapter 3, closely drawing on the respective publications). In addition to providing a more comprehensive picture of the behavioural economics of competitive balance, we add a discussion of sports policy implications (chapter 4). While perceived competitive balance is found to matter, there are rather narrow conditions for sports policy interventions or restrictive regulations of competition by the league management (or sports associations). Furthermore, it is not the balance of the overall league that matters. Instead, it is sufficient or even advantageous if the most relevant subcompetitions, like the race for the championship or the fight against relegation, are 'balanced' among a narrow oligopoly of contenders.

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