The marginal revenue for team B is 𝑚𝐵(1−2𝛽𝑤𝐵)(𝑡𝐴(𝑡𝐴+𝑡𝐵)2)mB1−2βwBtAtA+tB2. Assume for simplicity that 𝛽=0.5β=0.5 for both teams. If 𝛽=0.5β=0.5, then 𝑀𝑅𝐴=0MRA=0 when 𝑤𝐴=1wA=1 or 100%. This is thought to be a ...
Figure 3. Revenue functions for teams A and B for 0≤𝑤≤10≤w≤1. The league equilibrium can be found graphically by placing both marginal revenue lines in the same diagram, as depicted in Figure 4. Ties are not allowed and the winning percentage for each club, 𝑤𝐴wA and 𝑤...