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Using the two team competitive balance model with a small market team and a large market team, show how P∗, W P∗ S , W P∗ L , and payroll would be affected by a policy requiring the large market team to give 20% of the marginal revenue which is acquired from winning more than half of their games to the small market team. (This policy will affect marginal revenue of both teams )
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Using the two team competitive balance model with a small market team and a large market team, show...
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