Bidding for talent in sport

Jozsef Sakovics, Roberto Burguet

Research output: Working paperDiscussion paper

Abstract

We present a novel micro-structure for the market for athletes. Clubs simultaneously target bids at the players, in (Nash) equilibrium internalizing whether -depending on the other clubs' bids- a player not hired would play for the competition. For low/inelastic talent supply, we support -and generalize to heterogeneous players -the Coasian results of Rottenberg (1956) and Fort and Quirk (1995): talent allocation is efficient and independent of initial"ownership" and revenue sharing arrangements. We also characterize equilibria for high/elastic supply. The analysis uses a non-specific club objective with an endogenously derived trade-off between pecuniary and non-pecuniary benefits.
Original languageEnglish
PublisherEdinburgh School of Economics Discussion Paper Series
Number of pages41
Volume285
Publication statusPublished - 2018

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  • Bidding for talent in sport

    Burguet, R. & Sakovics, J., 4 Dec 2018, In: Economic Inquiry. 57, 1, p. 85-102

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