Question: Using the two team competitive balance model with a small market team and a large market team, show how P, W P S , W
Using the two team competitive balance model with a small market team and a large market team, show how P, W P S , W P L , and payroll would be affected by a policy requiring the large market team to give 20% of the marginal revenue which is acquired from winning more than half of their games to the small market team. (This policy will affect marginal revenue of both teams )
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