A NLIP Model on Wage Dispersion and Team Performance
(English)Manuscript (preprint) (Other academic)
Using a Non-Linear Integer Programming (NLIP) model, I examine if wage differencesbetween Super talents and Normal players improve the performance of four teams whichparticipate in a tournament, such as in the UEFA Champions League (UCL) group matches.With ad-hoc wage differences, the optimal solutions of the model show that higher wageequality seems to improve the performance of all teams, irrespectively if the elasticity ofsubstitution between Super - and Normal- players is high or low. In addition to that, a U-typeperformance exists in two teams with the highest and the second high elasticity ofsubstitution. With team data from the 2011-12 UCL group matches and from the Italian SerieA over 2010-12 seasons, the wage d ispersion has no effect on team performances.
Research subject Industrial Economics and Organisations
IdentifiersURN: urn:nbn:se:mdh:diva-14662OAI: oai:DiVA.org:mdh-14662DiVA: diva2:529956