sports economics

Team Competitive Balance Model Econ 4830

Due September 18 This assignment can be either handed in at the end of class on September 18 or a high quality scan can be uploaded to Carmen prior to class. This form must be used. The handbook chapter on competitive balance discusses a two team model for com- petitive balance in a sports league. Set up the two team, fixed talent model with two teams (one small market, one large) and label on your graph the winning percentage for each team, marginal revenue, average revenue, price of talent, and payrolls. (Label all curves and axes.) Use the space below to define any abbreviations.