Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76513
Authors: 
Kahn, Lawrence
Year of Publication: 
2003
Series/Report no.: 
CESifo Working Paper 1101
Abstract: 
This paper studies optimal sport league size. League expansion lowers average player quality, reducing fans' utility in inframarginal locations, while fan utility in new locations rises. Welfare analyses of such expansions must compare these two effects. Using a model where fan demand depends on average player quality and locality-specific factors, I find that under various pricing schemes, optimal league size is smaller than under free entry: the marginal team ignores its effects on inframarginal fans' utility. In some cases, the monopoly outcome is optimal, while in others the optimum league size is between the competitive and monopoly solutions.
JEL: 
L10
L40
Document Type: 
Working Paper

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