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German Working Papers in Law and Economics
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Volume 2004

AUTHOR:
Tina Heubeck

TITLE:
The Collective Selling of Broadcasting Rights in Team Sports

SUGGESTED CITATION:
Tina Heubeck (2004) "The Collective Selling of Broadcasting Rights in Team Sports", German Working Papers in Law and Economics: Vol. 2004: Article 13.
http://www.bepress.com/gwp/default/vol2004/iss1/art13


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ABSTRACT:

This paper introduces the theory of complementarities to the selling of broadcasting rights in team sports in two ways. Firstly, from a legal point of view such rights should not be centrally sold by the league or the association in order to comply with antitrust law because the league as the only seller demands monopoly prices. However, the problem cannot be solved by simply prohibiting collective selling. Using a variation of Cournot’s model we show that the price of a single game is higher if sold individually by the participating clubs compared to collective selling by the league. Secondly, as consumers regard games either as complements or as substitutes, demand for simultaneously played games is interdependent. We use the solutions employed in deciding about the pooling of patents to make a general suggestion.




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