nep-spo New Economics Papers
on Sports and Economics
Issue of 2008‒12‒07
two papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. The consequences of an open labour market in a closed product market in the economic environment of European professional football By Trudo Dejonghe; Wim Van Opstal
  2. The Contest for Olympic Succes as a Public Good By Loek Groot

  1. By: Trudo Dejonghe (Department of Business Studies, Lessius University College); Wim Van Opstal (Higher Institute for Labour Studies – Catholic University of Leuven)
    Abstract: Ever since the Bosman case opened the labour market for players in European professional football, competitive balance has reduced in favour of the Big 5 leagues (England, Spain, Italy, Germany and France). In this article we show that changing structures towards an open labour market in a closed product market resulted in a migration of player talents towards the major leagues and teams and in a competitive disadvantage for the smaller market leagues and their teams. Next to a theoretical argumentation, we provide empirical evidence and assess future options for the structure of European professional football.
    Keywords: Bosman case, competitive balance, international labour mobility, professional team sports, stepping stone league
    JEL: J61 L52 L83
    Date: 2008–12
  2. By: Loek Groot
    Abstract: This study considers the performance of countries at the Olympic Games as a public good. Firstly, it is argued that, at the national level, Olympic success meets the two key conditions of a public good: non-rivalry and non-excludability. Secondly, it is demonstrated that standard income inequality measures, such as the Lorenz curve and the Gini index, can be successfully applied to the distribution of Olympic success. The actual distribution of Olympic success is compared with alternative hypothetical distributions, among which according to population shares, the distribution favoured by a social planner and the noncooperating Nash-Cournot distribution. By way of conclusion, a device is proposed to make the distribution of Olympic success more equitable.
    Keywords: Olympic Games, public goods, externalities, social welfare, Nash
    JEL: D63 H41 H50
    Date: 2008–11

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