Lead to competitive imbalance within sports league

Assignment Help Business Economics

Reference no: EM13887098

1. Option 1: $10 million

Option 2: 20% chance of $20 million,

20% chance of $12 million,

60% chance of $5 million

a. What is the EV(expected value) of option 2?

b. If you are risk-averse, which option should you choose? Explain.

2. Describe two factors discussed in class that lead to competitive imbalance within a sports league.

3. Under what circumstances would an economist expect revenue sharing to NOT improve competitive balance? Explain your answer.

Reference no: EM13887098

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