How Media Technology Affects the Team's Market and the Competitive Balance of Sports League
Year: 2024
Type: article
Abstract: ABSTRACT Better broadcasting and sports globalization allow sports fans to watch televised matches from the comfort of home, which means that local geography becomes less of a deciding factor in constraining the professional sports market. In our model, utility‐maximizing fans’ decision to watch a game dictates a team's broadcast revenue and allows teams to monetize from non‐home fans. When fans watch a series of televised matches, teams’ markets overlap as they are not solely reliant on their home fan base, meaning that the actual difference in market size between teams is smaller, allowing teams with smaller home fan bases to narrow their performance gap against stronger teams.
Source: Bulletin of Economic Research
DOI: 10.1111/boer.12485
Authors: Hon Foong Cheah, Chao Qi
Institution: Shanghai University of Sport
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4405375053