Question

Choose one way in which they attempt to alter competitive balance. How and why?(econ of sports)

Answer 1

Competitive balance is critical for survival of sports in USA. Deviation from competitive balance, outcome of game would not be uncertain, so the people would not be attending sports any more in large number. Some teams seek to alter competitive balance in following way:

Excessive bidding for great players would alter competitive balance, only few teams would be successful in gathering all great players, so people would most probably lose their interest in sports.