Sports Business and Multisided Markets: Towards a New Analytical Framework?

Joint Discussion Paper Series in Economics Paper No. 11-2008

27 Pages Posted: 20 Aug 2008 Last revised: 25 Feb 2011

Oliver Budzinski

Ilmenau University of Technology

Janina Satzer

University of Marburg - Faculty of Economics and Business Administration

Date Written: February 23, 2011

Abstract

Despite still being younger than a decade, the theory of multisided market has offered numerous valuable insights for the analysis of non-ordinary industries in which a supplier serves two distinct customer groups that are indirectly interrelated by externalities. Examples include payment systems, matching agencies, commercial media and software platforms. However, professional sports markets have largely been neglected so far in this kind of research although they possess the characteristics of multisided markets. We contribute to filling this gap by describing the platform elements of professional suppliers of sports events and outlining problems where an application of this theoretical framework is likely to provide valuable insights and to add to the existing knowledge. Among these problems are integrative pricing strategies of sports clubs towards such different customer groups like attendees, broadcasters, sponsors, etc., including their welfare and antitrust implications, design decisions of sports associations in order to promote positive feedback loops among the customer groups as well as strategies to reinforce positive externalities among customer groups and alleviate negative ones.

Keywords: sports economics, two-sided markets, multisided platforms, professional sports business, pricing strategies, broadcasting rights

JEL Classification: L83, L82, L13, M21

Suggested Citation

Budzinski, Oliver and Satzer, Janina, Sports Business and Multisided Markets: Towards a New Analytical Framework? (February 23, 2011). Joint Discussion Paper Series in Economics Paper No. 11-2008. Available at SSRN: https://ssrn.com/abstract=1237014 or http://dx.doi.org/10.2139/ssrn.1237014

Oliver Budzinski (Contact Author)

Ilmenau University of Technology ( email )

Ilmenau, D-98684
Germany

HOME PAGE: http://www.tu-ilmenau.de/wth

Janina Satzer

University of Marburg - Faculty of Economics and Business Administration ( email )

Institutional and International Economics
Barfuessertor 2
Marburg, D-35037
Germany
+49 (0) 6421- 282 3913 (Phone)
+49 (0) 6421- 282 8974 (Fax)

HOME PAGE: http://www.uni-marburg.de/fb02/insecon

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