nep-spo New Economics Papers
on Sports and Economics
Issue of 2011‒11‒01
two papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon
  1. Evolutionarily Stable Strategies in Sports Contests By Martin Grossmann
  2. Late Conversion: The Impact of Professionalism on European Rugby Union By Vincent Hogan; Patrick Massey; Shane Massey
  1. By: Martin Grossmann (Department of Business Administration, University of Zurich)
    Abstract: Abstract: In the recent years, many clubs in the biggest European soccer leagues have run into debts. The sports economic literature provides several explanation for this development, e.g., the league structure (open versus closed league), club constitutions, ruinous rat races between clubs. While the majority of the articles presume the well-known Nash equilibrium concept, I apply evolutionary game theory in a sports contest model. If clubs follow evolutionarily stable strategies (ESS), then ESS generate higher investments and lower profits than predicted by Nash strategies independent of win maximizing or profit maximizing clubs. Overdissipation of the rent is possible for Nash strategies as well as for ESS.
    Keywords: Contest, evolutionary stable strategies, utility maximization, team sports league
    JEL: C72 C73 D74 L13 L83
    Date: 2011–10
    URL: http://d.repec.org/n?u=RePEc:iso:wpaper:0149&r=spo
  2. By: Vincent Hogan (University College Dublin); Patrick Massey (Compecon Ltd); Shane Massey (Trinity College Dublin)
    Abstract: Rugby union only went professional in 1995, much later than other major team sports. League structures and arrangements regarding revenue sharing and salary caps differ between the three main European leagues. We consider the impact of these differences on competitive balance. In addition, unlike soccer, rugby does not require leagues to be organised along national lines, which has enabled the smaller rugby playing countries to establish a joint league. This has prevented a migration of all the best players to larger country leagues as has happened in soccer and resulted in a greater degree of competitive balance in European rugby competitions.
    Keywords: Rugby, Economics
    Date: 2011–09–30
    URL: http://d.repec.org/n?u=RePEc:ucn:wpaper:201118&r=spo
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