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Tuesday, December 20, 2011

Market forces v Central Planning

By Tangotiger, 01:14 PM

Great stuff on the promotion/relegation system versus USA/Canada system.

If we look to Europe, though, we might see a better approach. To understand it, let’s consider the arguments of Frederich Hayek, who argued that a centrally planned economy can’t work as well as a free market one because the central planner could never have enough information to make adequate decisions. OK, but what does this have to do with sports?

Essentially, North American sports leagues use central planners to determine the location of sports teams. In contrast, European sports leagues rely on the market.
...
If these owners were ever successful, then essentially American owners would be exporting central planning to a market-oriented industry in Europe.

(10) Comments • 2011/12/21 • Sabermetrics • MLB_Management • Other Sports • Basketball • Football • Hockey • Soccer

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December 20, 2011
Market forces v Central Planning