A Measure of Competitive Imbalance for the PGA TOUR

Competitive imbalance could be a key consideration in the decisionmaking process for planners of individual sports leagues like the PGA TOUR. The normalized Herfindahl-Hirschman Index and the four-player and eight-player concentration ratios of annual wins provide a measure of competitive imbalance for the PGA TOUR. Fewer winners and more concentration of wins indicate more competitive imbalance. The allexempt tour enhanced balance while the implementation of the World Golf Championships lead to a higher level of imbalance. More competitive imbalance appears to lead to increased fan preference and suggests that individual and team sports leagues may need to be modeled differently. (JEL D71, D78, L83)