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Day: March 26, 2018

Business Model Innovation and Competitive Imitation: The Case of Sponsor-Based Business Model

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Abstract

We study sponsor-based business model innovations where a firm monetizes its product through sponsors rather than setting prices to its customer base. We analyze strategic interactions between an innovative entrant and an incumbent where the incumbent may imitate the entrant’s business model innovation once it is revealed. We find that an entrant needs to strategically choose whether to reveal its innovation by competing through the new business model, or conceal it by adopting a traditional business model. We show that the value of business model innovation may be so substantial that an incumbent may prefer to compete in a duopoly rather than to remain a monopolist.

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Marquette Law Review | Inventories: Inventories

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The importance of inventories has been recognized for centuries. Initially, they were significant primarily for property tax purposes; however, they are also essential in accounting for results of operations during any stated period representing only a portion of the life of an enterprise. More recently, the emphasis has been upon their effect in the determination of income for tax purposes.

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The Commercial Monopoly in Sports

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These are challenging times for those who roam the corridors of power in the highest echelons of international sport, with some international sports federations (notably the two biggest players, the International Olympic Committee and FIFA) having experienced crises of governance and well-publicised allegations of corruption and mismanagement in the past decade or so. The Salt Lake City Olympic Games, of course, comes to mind.

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Alcohol Brand Sponsorship Repor.t: Identified Alcohol Brand Sponsorships – U.S., 2010-2013

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Methods

This study examined sponsorship of organizations and events in the U.S. by alcohol brands from 2010-2013. The top 75 brands of alcohol consumed by underage drinkers were identified based on a previously conducted national internet-based survey. For each of these brands, a systematic search for sponsorships was conducted using Google.

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Who Sponsors Whom and Why? An Empirical Investigation of Sports Sponsorships

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Abstract

This paper applies a two-sided matching model to investigate the formations of sports sponsorships using a dataset containing the shirt sponsorships from 43 English football clubs during the period from 1990 to 2010. We find that sponsorships become less valuable as the distance between the club and the sponsor’s head office grows and that better-performing clubs can attract more distant sponsors. In addition, there is an assortative matching between a club’s attendance and a sponsor’s revenue. Based on the estimates from the two-sided matching model, we simulate the counterfactual matching outcomes if sponsorships on alcohol and gambling are banned. Our estimates suggest that such bans will not have the biggest impact on the (relatively successful) clubs that currently have alcohol and gambling sponsors. Instead, it is clubs with low attendance and clubs in low income, less populated areas will be most affected.

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