Markets: Cartel Behavior and Amateurism in College Sports
AbstractThis paper studies intercollegiate athletics in the context of the theory of cartels. Some point to the explicit attempts by the National Collegiate Athletic Association (NCAA) to restrict output and payments for factors of production as evidence of cartel behavior. Others argue that such limits enhance product quality by preserving amateurism. I find that the NCAA's compensation limits on athletes lead to high levels of rents from the entertainment revenues produced by the athletes, a finding consistent with the cartel interpretation. The athletes producing these rents are disproportionately African-American, while the beneficiaries are primarily white. The rents are typically spent on facilities, nonrevenue sports, and, possibly, head coaches' salaries. Big-time football and men's basketball programs earn accounting profits, although the athletic departments in which they reside make accounting losses on average. However, there is some evidence, albeit not unanimous, that sports generate alumni contributions, state appropriations, and additional student applications. But, arms race considerations suggest that there may be some societal gains to the aggregate limitation of spending on college athletics.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by American Economic Association in its journal Journal of Economic Perspectives.
Volume (Year): 21 (2007)
Issue (Month): 1 (Winter)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Betsey Stevenson, 2010.
"Beyond the Classroom: Using Title IX to Measure the Return to High School Sports,"
The Review of Economics and Statistics,
MIT Press, vol. 92(2), pages 284-301, May.
- Betsey Stevenson, 2010. "Beyond the Classroom: Using Title IX to Measure the Return to High School Sports," CESifo Working Paper Series 2959, CESifo Group Munich.
- Betsey Stevenson, 2006. "Beyond the classroom: using Title IX to measure the return to high school sports," Working Paper Series 2006-44, Federal Reserve Bank of San Francisco.
- Betsey Stevenson, 2010. "Beyond the Classroom: Using Title IX to Measure the Return to High School Sports," NBER Working Papers 15728, National Bureau of Economic Research, Inc.
- Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
- Franklin G. Mixon, Jr. & Len J. Trevi�O, 2004. "How Race Affects Dismissals of College Football Coaches," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 645-656, October.
- Lawrence DeBrock & Wallace Hendricks & Roger Koenker, 1994. "The Economics of Persistence: Graduation Rates of Athletes as Labor Market Choice," Working Papers _001, University of Illinois at Urbana-Champaign, revised 1996.
- Sarah E. Turner & Lauren A. Meserve & William G. Bowen, 2001. "Winning and Giving: Football Results and Alumni Giving at Selective Private Colleges and Universities," Social Science Quarterly, Southwestern Social Science Association, vol. 82(4), pages 812-826.
- Hausman, Jerry A & Leonard, Gregory K, 1997. "Superstars in the National Basketball Association: Economic Value and Policy," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 586-624, October.
- John J. Siegfried & Molly Gardner Burba, 2003. "The College Football Association Television Broadcase Cartel," Vanderbilt University Department of Economics Working Papers 0320, Vanderbilt University Department of Economics.
- Daniel Sutter & Stephen Winkler, 2003. "NCAA Scholarship Limits and Competitive Balance in College Football," Journal of Sports Economics, , vol. 4(1), pages 3-18, February.
- Brown, Robert W, 1993. "An Estimate of the Rent Generated by a Premium College Football Player," Economic Inquiry, Western Economic Association International, vol. 31(4), pages 671-84, October.
- Lawrence DeBrock & Wallace Hendricks & Roger Koenker, 1996. "The Economics of Persistence: Graduation Rates of Athletes as Labor Market Choice," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 513-539.
- Jonathan Meer & Harvey S. Rosen, 2008.
"The Impact of Athletic Performance on Alumni Giving: An Analysis of Micro Data,"
NBER Working Papers
13937, National Bureau of Economic Research, Inc.
- Meer, Jonathan & Rosen, Harvey S., 2009. "The impact of athletic performance on alumni giving: An analysis of microdata," Economics of Education Review, Elsevier, vol. 28(3), pages 287-294, June.
- Betsey Stevenson, 2007.
"Title IX and the Evolution of High School Sports,"
CESifo Working Paper Series
2159, CESifo Group Munich.
- PEETERS, Thomas, 2010.
"TV revenue sharing as a coordination device in sports,"
2010005, University of Antwerp, Faculty of Applied Economics.
- Peeters, Thomas, 2012. "Media revenue sharing as a coordination device in sports leagues," International Journal of Industrial Organization, Elsevier, vol. 30(2), pages 153-163.
- Thomas Peeters, 2011. "TV Revenue Sharing as a Coordination Device in Sports Leagues," Working Papers 1109, International Association of Sports Economists & North American Association of Sports Economists.
- Peter K. Hunsberger & Seth R. Gitter, 2014. "What is a Blue Chip Recruit Worth? Estimating the Marginal Revenue Product of College Football Quarterbacks," Working Papers 2014-03, Towson University, Department of Economics, revised Apr 2014.
- Böheim, René & Lackner, Mario, 2012.
"Returns to education in professional football,"
Elsevier, vol. 114(3), pages 326-328.
- Böheim, René & Lackner, Mario, 2011. "Returns to Education in Professional Football," IZA Discussion Papers 5665, Institute for the Study of Labor (IZA).
- René Böheim & Mario Lackner, 2011. "Returns to Education in Professional Football," Economics working papers 2011-02, Department of Economics, Johannes Kepler University Linz, Austria.
- PEETERS, Thomas, 2011.
"Optimal gate revenue sharing in sports leagues,"
2011015, University of Antwerp, Faculty of Applied Economics.
- Jill Harris, 2011. "The Demand for Student-Athlete Labor and the Supply of Violations in the NCAA," Working Papers 1115, International Association of Sports Economists & North American Association of Sports Economists.
- Mario Lackner & Christine Zulehner, 2013.
"Rent Sharing and Gender Discrimination in Collegiate Athletics,"
NRN working papers
2013-07, The Austrian Center for Labor Economics and the Analysis of the Welfare State, Johannes Kepler University Linz, Austria.
- Mario Lackner & Christine Zulehner, 2013. "Rent Sharing and Gender Discrimination in Collegiate Athletics," Economics working papers 2013-09, Department of Economics, Johannes Kepler University Linz, Austria.
- Jonathan Meer & Harvey S. Rosen, 2008. "The Impact of Athletic Performance on Alumni Giving: An Analysis of Micro Data," Working Papers 1046, Princeton University, Department of Economics, Center for Economic Policy Studies..
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.