| By: |
Oliver Budzinski (Faculty of Business Administration and Economics, Philipps Universitaet Marburg);
Janina Satzer (Faculty of Business Administration and Economics, Philipps Universitaet Marburg) |
| 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: |
L83 L82 L13 M21 |
| Date: |
2008 |
| URL: |
http://d.repec.org/n?u=RePEc:mar:magkse:200811&r=spo |