Articles in this issue:

  • David J. Berri
    Michael A. Leeds
    and Peter von Allmen

    The assumption that workers are paid their marginal product underlies the theory of competitive labor markets and is the basis for comparison with non-competitive markets. Many firms, however, generate revenue in fixed lump-sums that are unrelated to the efforts of current workers. For example, many professional sports receive substantial income from broadcast rights, which are negotiated at wide intervals. We develop a theory of compensation in the presence of “fixed revenue” and test our theory using data from the National Basketball Association. Our results indicate that TV revenue...Read more

  • Nicholas M. Watanabe

    Sport demand literature notes multiple sources of demand for a sport product. Two forms of direct demand come in the form of live attendance by patrons and purchases of pay-per-view (PPV) to watch sporting contest through a television set (Borland & Macdonald, 2003). That is, attendance and PPV purchases are both direct consumption of the sporting product. Recent theoretical discussion has noted the importance understanding both live attendees and television viewers of sport events in order for organizations to behave more strategically (Budzinski & Satzer, 2011). This study...Read more

  • Paulo Reis Mourão and Cesar Cima

    Competitive balance is recognized as an important source of market efficiency, a fact found to be true of soccer markets, studied here. In this paper, we measure the competitive balance of the Portuguese Soccer League “Primeira Liga” using data compiled since the 1980/1981 season. Employing different measures of competitive balance, we test for trends in competitive balance using the most appropriate (considering that we are working with time series) techniques and explore how this trend had changed because of the existence of the Golden Generation of soccer players (e.g., Figo, Rui Costa...Read more

  • Joel G. Maxcy and Daniel J. Larson

    American universities, belatedly following their professional sports counterparts, are constructing new stadiums. A portion of the funds typically provided to athletic departments are drawn from general university resources. Besides increased revenue flows, indirect benefits that contribute to university objectives are typically cited as part of the demand for a new college stadium. Examples of these spillover benefits are an enhanced campus community, a higher quality student body, and more alumni donations. We analyze a university’s stadium proposal and apply standard capital budgeting...Read more

  • Jason A. Winfree

    Madden (in press) hopes that it is “Game Over” regarding the “Walrasian Fixed Supply Conjecture” and “Contest-Nash” solutions. In this paper, I argue that framing the debate as such misses the point of Winfree and Fort (2012). Furthermore, Madden (in press) argues that under certain assumptions, which need to be made, the model that follows was previously given in Madden (2011). However, I argue that Madden (2011) is one of many models that might follow and his assumptions do not hold in all leagues.Read more