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Explore the dynamics of rival sports leagues and predictions on rules changes and performance outcomes to understand the industry landscape. Analyze the impact of talent dilemmas and team movements on league standings and expansion records.
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Rodney Fort's Sports Economics Chapter 5Sports Market Outcomes I
Figure 5-1Rival League Talent Dilemma Legend: The dominant strategy in this game is for both leagues to spend high and obtain major league status. For example, if League 1 spends high, so should League 2. If League 1 spends low, League 2 should still spend high. And the same strategy holds for League 1 since the payoffs are symmetric. But if the costs of maintaining major league status are too high over time, only one dominant league can survive.
Table 5-3Pro Sports League Coverage of the Top 30 Cities by Population