Uncertainty of outcome and varying fan preferences : a game theoretic approach

Abstract

This paper applies simple game theory to investigate an equilibrium link between composition of football clubs’ fans preferences and the clubs’ talent acquisition decisions. Such a link is identified, and wealth of the clubs turns out to be important for such equilibria to be established. However, even poor clubs can reach equilibria where they end up being winners of the “talent-acquisition-game”, given that their fans are ‘die-hard’ enough. In short; clubs with a long history and a dedicated fan base are much better prepared for successful competition in the football market.