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@article{ Mastromarco2009,
 title = {Rule Changes and Competitive Balance in Formula One Motor Racing},
 author = {Mastromarco, Camilla and Runkel, Marco},
 journal = {Applied Economics},
 number = {23},
 pages = {3003-3014},
 volume = {41},
 year = {2009},
 doi = {https://doi.org/10.1080/00036840701349182},
 urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-240949},
 abstract = {This paper provides an economic explanation of the frequent rule changes in the Formula One (F1) motor racing series. In a two-stage model, the FIA (as the organizer of the F1) first decides whether to change the rules or not, and then the racing teams compete in a contest. It turns out that a rule change reduces the teamsâ ™ performances, but also improves competitive balance between the teams. The rule change is implemented, if the FIAâ ™s revenue gain from the latter effect overcompensates the FIAâ ™s
revenue loss from the former effect. We provide empirical evidence from F1 seasons in the period 1950-2005 which supports the main implications of the model.},
}