Litigation as a Strategy to Overcome Monopolistic Inefficiency in Sports

Research output: Contribution to journalArticle

Abstract

Prior work has identified welfare problems with monopoly sports leagues that are not governed by a residual claimant: In addition to standard effects of allocative and distribute inefficiency, these leagues often reach sub-optimal results because of bargaining costs and information problems that distort the results because of a governance structure reflecting parochial stakeholder interests. This paper hypothesizes that leading sports law cases can be viewed as strategic attempts to overcome information and bargaining costs to improve upon sub-optimal league decisions and facilitate efficient ones. A case study approach is used to identify different ways in which litigation can be used in this manner.

Original languageEnglish (US)
Pages (from-to)644-654
Number of pages11
JournalManagerial and Decision Economics
Volume38
Issue number5
DOIs
StatePublished - Jul 2017

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Strategy and Management
  • Management Science and Operations Research
  • Management of Technology and Innovation

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