The Origin of the Reserve Clause: Owner Collusion versus 'Public Interest'
AbstractThis article examines the creation of the first professional athletic labor market restriction over a century ago. In 1879, professional baseball club owners mutually agreed that each could reserve five players whom the others would not sign without permission, justifying the action by claiming that it was in the "public interest," that is, necessary to preserve the game in the face of various alleged problems. Analysis of the relevant data reveals that these problems were either nonexistent or easily solved within the game's existing rule structure. Given the lack of support for the public interest arguments proffered by owners, the more likely motive for the reserve rule was monopsonistic collusion.
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 in its journal Journal of Sports Economics.
Volume (Year): 2 (2001)
Issue (Month): 2 (May)
Contact details of provider:
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Martin Schmidt, 2011. "Institutional Change and Factor Movement in Major League Baseball: An Examination of the Coase Theorem’s Invariance Principle," Review of Industrial Organization, Springer, vol. 39(3), pages 187-205, November.
- Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications).
If references are entirely missing, you can add them using this form.