Some Comparative Economics of the Organization of Sports: Competition and Regulation in North American vs. European Professional Team Sports Leagues

By Andreff, Wladimir | The European Journal of Comparative Economics, June 2011 | Go to article overview

Some Comparative Economics of the Organization of Sports: Competition and Regulation in North American vs. European Professional Team Sports Leagues


Andreff, Wladimir, The European Journal of Comparative Economics


What is the future of comparative economics? This question has been with us since the collapse of the former communist regimes associated with "socialist centrally planned economies". Various responses have been suggested in the literature during the post-communist period of economic transformation and I will briefly sketch a few of them below (see section 1). But no one could imagine that a possible dividing line between a quasi-socialist system and a deregulated market economy were to persist in some area until today, 2010. Had it been so, would not all those involved into comparative economics have taken this opportunity to prolong the use of their usual economic and institutional tools of comparative analysis in that area? Amazing as it may seem, such an area does exist and my contribution is devoted to briefly present it as an avenue for new comparative economic research.

There is a dividing line between the North American closed league system in professional team sports--a sort of island of regulated "quasi-socialist" economy in the middle of a liberal American market capitalism--and the European open league system which has rapidly been almost completely deregulated, starting from European football (soccer) in 1995 and spreading throughout other European sports and all open professional team sport leagues. There are four dimensions along which closed and open team sports leagues can be compared: organizational (section 2), in a Walrasian model (section 3), using a Nash-equilibrium conjecture (section 4), and through empirical testing (section 5). I will briefly screen all four. The empirical evidence will show that European open leagues differ from North American closed leagues in that teams' budget constraints in the former are soft while they are hard in the latter. We thus meet Kornai's insight in unexpected places. A disequilibrium model would fit open leagues better.

1) Which future for comparative economic studies?

Jan Tinbergen (1961) was the first economist and Nobel Prize winner who stated and predicted that the core object of comparative economics, capitalism versus socialism, would vanish, since the two opposite institutional and economic systems may be replaced by a single system. This hypothesis is known as one of convergence between economic systems (Andreff, 1992). The collapse of the Soviet-type systems between 1989 and 1991 followed by two decades of post-communist transformation did not exactly confirm Tinbergen's (and others') convergence prognosis. The two former systems did not merge because one of them--the Soviet system--was definitely submerged by the other with a restoration of a capitalist market economy in former Soviet economies. Did the total collapse of the communist system and the associated globalisation of capitalism put an end to comparative economics and turn the latter into a branch of economic history? Nuti (1999) has contented that "nothing could be further from the truth". Let me offer an elaboration on Nuti's seven arguments:

1) Some Soviet-type economies are surviving in countries like Turkmenistan, Tajikistan, North Korea and even Cuba.

2) There are countries, namely Vietnam and China, which are neither traditional Soviet-type systems, nor post-transitional economies such as Central and Eastern European countries which have joined the EU; sooner or later, their systemic transformation will become a special case, as Kornai (2006), who adds the Muslim countries to the list, suggested. He concludes that 'transitology' (a variant of comparative economics when a system changes or collapses) is not over.

3) As long as we have different systems, the question of actual or possible transition from one to the other remains a topic for comparative economics, since different transition paths have been observed in the 1990s. Even within capitalism, institutions evolved in various countries at various speeds (Kornai, 2006).

4) Within the capitalist system itself, there exist several prototypes of a market economy which distinguish the Anglo-American model from a Japanese and South Korean networked version, German Mitbestimmung, and even more so (the former French) state capitalism in various developing countries (see also Boyer, 1993). …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Some Comparative Economics of the Organization of Sports: Competition and Regulation in North American vs. European Professional Team Sports Leagues
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.