This paper develops a contest model of a professional sports league in which clubs maximize a weighted sum of profits and wins (utility maximization). The model analyzes how more win-orientated behavior of certain clubs affects talent investments, competitive balance and club profits. Moreover,...

This paper outlines how the theory of contests is applied to professional team sports leagues. In the first part, we present the traditional Tullock contest and explain some basic properties of the equilibrium. We will then extend this static contest to a two-period model in order to analyze...

Two contestants compete against each other twice in a repeated contest. They invest and build up a human capital stock in order to increase their probability of winning a prize in each contest. In the second-period contest, any positive or negative adjustments of the human capital stock...