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The Case for Baseball's Special Antitrust Immunity

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  • Gary R. Roberts

Abstract

In this article, the author argues that if one assumes that the public interest equates with maximizing consumer utility, then baseball's historic judicially-created antitrust immunity is in the public interest. Despite Major League Baseball's natural monopoly market power, applying anticonspiracy principles to this inherently wholly-integrated business would produce a form of irrational, ad hoc regulation by judges and juries that would create inefficiency and uncertainty without on balance enhancing consumer welfare. For base-ball's minor leagues, applying antitrust laws would most likely lead to the elimination of many teams and the concentration of those remaining in fewer areas. Given that the minor league product is consumed by entire communities instead of only by those who buy tickets, this would significantly diminish consumer welfare. Thus, the public interest is best served by maintaining baseball's antitrust “exemption.â€

Suggested Citation

  • Gary R. Roberts, 2003. "The Case for Baseball's Special Antitrust Immunity," Journal of Sports Economics, , vol. 4(4), pages 302-317, November.
    • Handle: RePEc:sae:jospec:v:4:y:2003:i:4:p:302-317
    DOI: 10.1177/1527002503257326
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    References listed on IDEAS

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    1. Walter C. Neale, 1964. "The Peculiar Economics of Professional Sports," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 78(1), pages 1-14.
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    Cited by:

    1. Stephen F. Ross, 2003. "Antitrust, Professional Sports, and the Public Interest," Journal of Sports Economics, , vol. 4(4), pages 318-331, November.
    2. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    3. Stephen F. Ross, 2003. "Competition Law as a Constraint on Monopolistic Exploitation by Sports Leagues and Clubs," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 569-584, Winter.

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