league model questions *

Question 1

If 𝑎 = 𝑎 and 𝑏 = 𝑏, how will the teams’ talent levels compare if they share the same objectives?

Answer 1

Both teams will acquire the same levels of talent.

Question 2

If 𝑎 = 𝑎 and 𝑏 = 𝑏, and one team is a win maximizer while the other is a profit maximizer, which team will acquire more talent?

Answer 2

The win maximizing team will acquire more talent among the two teams.

Question 3

If 𝑎 = 𝑎 and 𝑏 = 𝑏, and one team is a win maximizer while the other is a profit maximizer, how would each team’s level of talent compare to if both teams had the same objectives?

Answer 3

The win maximizing team will acquire more talent compared if it were a profit maximizer (in the same situation).

Question 4

If 𝑎 = 𝑎 and 𝑏 = 𝑏, do win maximizing or profit maximizing teams charge more for tickets?

Answer 4

Win maximizing teams will charge more for tickets than profit maximizing teams.

Question 5

If 𝑎 > 𝑎 and 𝑏 = 𝑏, which team acquires more talent if both teams share the same objectives?

Answer 5

Team 𝑖 will acquire more talent.

Question 6

If 𝑎 = 𝑎 and 𝑏 < 𝑏, which team acquires more talent if both teams share the same objectives?

Answer 6

Team 𝑖 will acquire more talent.

Question 7

If 𝑎 > 𝑎 and 𝑏 = 𝑏, and team 𝑖 is a win maximizer and team 𝑗 is a profit maximizer, which team acquires more talent?

Answer 7

Team 𝑖 will acquire more talent.

Question 8

If 𝑎 = 𝑎 and 𝑏 < 𝑏, and team 𝑖 is a win maximizer and team 𝑗 is a profit maximizer, which team acquires more talent?

Answer 8

Team 𝑖 will acquire more talent.

Question 9

If 𝑎 > 𝑎 and 𝑏 = 𝑏, or if 𝑎 = 𝑎 and 𝑏 < 𝑏, and team 𝑖 is a profit maximizer and team 𝑗 is a win maximizer, which team acquires more talent?

Answer 9

It is indeterminant which team will acquire more talent.

Question 10

Under what conditions is competitive balance more equal or less equal?

Answer 10

If the markets are unequal, then competitive balance is more even if the big market team is a profit maximizer while the small market team is a win maximizer. If the markets are unequal, then competitive balance is less even if the big market team is a win maximizer while the small market team is a profit maximizer.

Question 11

Under what conditions is the sport more popular (i.e. more tickets sold)?

Answer 11

The sport is more popular (i.e. tickets demanded) the more total talent is acquired by teams. In general, the sport is more popular under win maximizing teams rather than profit maximizing teams.