Fans Spending: Relationship Between Monopoly Market and Duopoly Market in Sports

Fans Spending Relationship between Monopoly Market and Duopoly Market in Sports
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Fans Spending Relationship between Monopoly Market and Duopoly Market in Sports
The sports in various cities have different market structures. While some cities’ sports are run in monopolistic environments, others operate in the duopoly markets. Rascher et al., 2019 asserts that in a monopoly sports market, the teams and fans depend on one league or team to make all the sports decision in the city. The lack of rivalry puts all the bargaining power in their hands of the monopolist. Contrary, in the duopoly sports market, the team and fans have two clubs that compete to ensure they are the most preferred in the city (Araz et al., 2020). In such a case, bargaining power is shared amongst fans and the league cartels hence the possibility of more enjoyment and fair prices for the franchise. Che et al. (2017) claim that the duopoly market allows each team to have some monopoly powers with regulations that prevent them from going overboard. As the monopolists increase the prices to maximize profit, the duopoly always competes to increase the enjoyment targeting to attract fans, teams, and players to maximize profits. The paper analyzes the fan spending relationship between the duopoly market and the monopoly market. It uses the Utah Jazz –monopoly and Lakers and Clippers duopoly to clarify the relationship.
The spending relationship of fans in the monopoly market differs from their spending relationship in the duopoly market. The total bargaining power in the hands of the monopolist gives them the right to overprice the tickets and sports franchise to maximize profit. The greed of earning more makes the monopoly cartels take advantage of the fans and overcharge them as they will. According to Rascher et al. (2019), the leagues even become crueler by blackmailing both the local government and the fans to move the club to other cities if they lack cooperation. They use the monopoly power to get tax subsidies to inform of counseling stadium tax payment and lower rent prices. Due to subsidies, the tax ends up to the fans increasing the fans' spending amount in such a market. Moreover, controlling the broadcasting rights by the monopolist also affects the spending relationship of fans in a monopoly market. It controls the rights by imposing high prices on the right to participate in live coverage of the games (Araz et al., 2020). The high costs of broadcasting rights lock out some small media stations find it hard to afford. The small numbers of sports stations that afford to air the sports end up redirecting the subscription charges' costs directly.
Contradictory, the fan spending relationship in the duopoly market is different from the monopoly market. The presence of two dominating teams introduces the competition factor in the games, thus transferring some of the bargaining power to the fans and players (Rascher et al., 2019). The competing teams have the task of placing convincing the fans to prefer them. The shared powers push the teams to allocate ticket prices that favor the fans. The franchise, in such cases, is cheaper, and the broa...