Reference no: EM133252126

Economics of sport

Pick a team sports league, any sport, pro or amateur, doesn't matter as long as you can find the necessary data and information. To keep any calculations you might do to a reasonable level, you can pick a division or conference rather than the entire league - aim for a number of teams between maybe 6 and 10. You should also preferably get a division or conference where the teams haven't changed much latelv.

Start by discussing why the league you're studying might be interested in competitive balance.

What benefit does the league as a whole get from more balance? What limits are there to this? How might the leagues interests differ from the interests of individual teams?

Drawing on what we've learned about factors (rules, financing etc.) that influence competitiveness, describe efforts or actions, rules in place etc. taken by the league you've chosen that might have an influence on the degree of competitiveness in your league.

Provide some numerical evidence of the degree of competitiveness in the league you've chosen, and how that has varied over time. This might include things like the standard deviation of winning percentages compared to the "ideal" standard deviation, between season variations in winning percentage, the Herfindahl-Hirschman index for championships or division wins, or a Lorenz curve for the distribution of points earned in your division or league.

Some comments on your findings, how balanced your league is, how things have evolved or how your league compares to others, would be appropriate.

Is there any sense in your data that your leagues actions to promote competitiveness (or lack of them) might have had a result?

Note: in presenting your numerical results, you should at the very least present the formulas you are using. An appendix with season by season standing results would also look good.