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Priority Resource Allocation and Competitive Balance in Dynamic Competitions: the Case of Professional Ice Hockey

Student: Artem Korytko

Supervisor: Anastasia Antsygina

Faculty: International College of Economics and Finance

Educational Programme: Double degree programme in Economics of the NRU HSE and the University of London (Bachelor)

Final Grade: 8

Year of Graduation: 2020

This work tests the overall effect of the draft system on the competitive balance in National Hockey League. The research assesses the impact of draft on a general league scale by collecting data on 101 NHL seasons. Moreover, the overall effect is further decomposed by conducting a narrower team level study using the data of 30 NHL franchises for the last 14 seasons. The main findings are that the presence of draft makes league more competitive and that higher order draft pick improves team’s position in the table. Furthermore, particular quantitative effects of the draft are determined in this work. Obtained results are significant econometrically and are in line with general intuition. Overall, draft system, as a tool of resource reallocation, is proven to be effective, as it helps weaker teams to become stronger, equalizing the probability of each club to win a title, hence, making the league more balanced without permanent winners and losers.

Full text (added June 11, 2020)

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