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Competitive Balance in the NFL

This study explores the competitive balance in the NFL by measuring team performance using the Herfindahl-Hirschman Index (HHI) and market share (MSi) calculations. With MSi defined as a team's wins relative to league games, we examine various factors impacting competition, such as free agency, salary cap implications, expansion years, strikes, and player talent distribution. The analysis includes definitions and statistics related to talent concentration, offering insights into how these elements contribute to the overall competitive landscape of the league.

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Competitive Balance in the NFL

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  1. Competitive Balance in the NFL • Measuring Competition: HHI =  (MSi)2 • MSi = Market Share for a Team = (Wins for that team / # of League Games)

  2. Factors Affecting Competition • HHI = f (FA/SAL, EXPAN, EXPAN(1) STRIKE, PLAYER TALENT, HHI(-1)) • FA/SAL = Free Agency/ Salary Cap Year 1993 • EXPAN= Expansion Year • EXPAN (1) = Year after expansion • STRIKE = Strike Year • Player Talent Concentration

  3. dHHI & Upper Bound

  4. PLAYER TALENT = HHIPF + HHIPA • HHIPF =  (Points Scoredi / Total Points Scored in the League)2 • HHIPA =  (Points Scored Againsti / Total Points Scored Against in the League)2

  5. VARIABLE DEFS & STATS

  6. Results

  7. RESULTS

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