A1 Journal article (refereed)
Economics of Esports (2019)


Mangeloja, E. (2019). Economics of Esports. In T. Takala, T. Auvinen, M. Vesa, J. Tienari, P. Sajasalo, S. Heikkinen, J. Helms Mills, & M. Kallinen-Kuisma (Eds.), Electronic Journal of Business Ethics and Organization Studies. Vol. 24, No. 2. Special issue: Implications of Digitalization on Organizations and Leadership : Esports, Gamification and Beyond (24, pp. 34-42). Jyväskylän yliopisto, Business and Organization Ethics Network (BON). Electronic Journal of Business Ethics and Organization Studies. http://ejbo.jyu.fi/pdf/ejbo_vol24_no2_pages_34-42.pdf


JYU authors or editors


Publication details

All authors or editorsMangeloja, Esa

Parent publicationElectronic Journal of Business Ethics and Organization Studies. Vol. 24, No. 2. Special issue: Implications of Digitalization on Organizations and Leadership : Esports, Gamification and Beyond

Parent publication editorsTakala, Tuomo; Auvinen, Tommi; Vesa, Mikko; Tienari, Janne; Sajasalo, Pasi; Heikkinen, Suvi; Helms Mills, Jean; Kallinen-Kuisma, Minna

Journal or seriesElectronic Journal of Business Ethics and Organization Studies

eISSN1239-2685

Publication year2019

Volume24

Issue number2

Pages range34-42

Number of pages in the book61

PublisherJyväskylän yliopisto, Business and Organization Ethics Network (BON)

Place of PublicationJyväskylä

Publication countryFinland

Publication languageEnglish

Persistent website addresshttp://ejbo.jyu.fi/pdf/ejbo_vol24_no2_pages_34-42.pdf

Publication open accessOpenly available

Publication channel open accessOpen Access channel

Publication is parallel published (JYX)https://jyx.jyu.fi/handle/123456789/66616


Abstract

In this paper, esports market development is exhibited and analyzed through various data sources and literature review. Additionally, economic concepts are applied to the esports environment. Demand characteristics of this emerging market are analyzed by applying the concept of competitive balance as commonly used in economics of sport scrutiny. The elite esports demand is proxied by gathering data on total prize money in the elite esports tournaments and explaining the esports demand by testing various factors measuring the competitive market properties. The most commonly used measurement in economics of sport for measuring withinseason competitive balance is calculated as the actual standard deviation of winning percentages to the hypothesized ideal standard deviation. Nevertheless, unique market properties of esports require novel methods and measurements. Therefore, alternative methods for measuring competitive environment properties in esports markets are developed and tested. Statistical moment methods enable the measuring of the distributional properties of prize money deviation. Distributional information is applied for constructing various index measures for testing the esports market competitive balance and that information is modeled in regression estimations for explaining the demand properties of elite esports markets. One of the main contributions of this paper is to underline the different characteristics of the esports market compared to the traditional sport environment. Finally, esports market UOH testing results are contrasted with research findings from traditional elite sports markets. It appears that esports market demand is better modelled by applying “superstar” models by Rosen (1981) and Adler (1985) than traditional within-season variation UOH models.


Keywordselectronic sportsprofessional sportscompetition (economy)business models

Free keywordssports economics; competitive balance; uncertainty of outcome hypothesis (UOH); superstars


Contributing organizations


Ministry reportingYes

Reporting Year2019

JUFO rating1


Last updated on 2024-11-03 at 14:26