Production Functions in Australian Professional Team Sport: The Australian Football League

Nadarajah, Christopher (2006). Production Functions in Australian Professional Team Sport: The Australian Football League MPhil Thesis, School of Economics, University of Queensland.

       
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Author Nadarajah, Christopher
Thesis Title Production Functions in Australian Professional Team Sport: The Australian Football League
School, Centre or Institute School of Economics
Institution University of Queensland
Publication date 2006
Thesis type MPhil Thesis
Supervisor Associate Professor George Docwra
Subjects 9102 Microeconomics
Abstract/Summary This thesis examines sporting production within the Australian Football League (AFL), a matter not usually subject to microeconomic analysis. To achieve this objective, a stochastic frontier model of the sport is developed and used to analyse the technical efficiency of all 16 teams within the league over six consecutive seasons between 1996 and 2001. In addition to identifying the key play variables influencing the performance of AFL teams, the analysis shows that, over the six seasons, AFL teams operated with high levels of technical efficiency and that such high levels of technical efficiency are a necessary but not sufficient condition for on-field success. The efficiency analysis also demonstrated the existence of an inherent cyclicality in the technical efficiency of AFL teams. It is considered that a major underlying factor for this cyclical pattern are the difficulties concerning player adjustment, including those associated with the AFL's regulatory framework which chiefly comprises a salary cap and player draft. This thesis also presents a broader examination of the industry which is useful given the industry's highly integrated nature and the intrinsic linkage between competitive balance and the structural environment. In terms of a key policy implication, it is proposed there may be advantages for the league to examine options to reduce player adjustment costs as a means of facilitating greater technical efficiency for teams and enhancing competitive balance.

 
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Created: Fri, 21 Nov 2008, 15:28:49 EST