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The Demand for Student-Athlete Labor and the Supply of Violations in the NCAA

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  • Jill Harris

    ()
    (Department of Economics, University of Redlands)

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    Abstract

    The National Collegiate Athletic Association (NCAA) acts as a cartel with monopsony power in the market for student-athletes. This paper models the demand for student-athlete labor using a Mill-Edgeworth-Marshall reciprocal demand model. The reciprocal demand translates into a supply of violations (or cheating) on the NCAA cartel agreement. A theoretical foundation for this simultaneous system is created and an empirical model is estimated using a maximum likelihood estimator on violations data from Division IA basketball, baseball, and football programs from 5 conferences. Results suggest market power is significant in explaining some of the variation in the supply of violations. Since detecting and deterring cheating is costly, information about the supply of violations is useful.

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    File URL: http://college.holycross.edu/RePEc/spe/Harris_NCAAViolations.pdf
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    Bibliographic Info

    Paper provided by International Association of Sports Economists & North American Association of Sports Economists in its series Working Papers with number 1115.

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    Length: 25 pages
    Date of creation: Oct 2011
    Date of revision:
    Handle: RePEc:spe:wpaper:1115

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    Web page: http://www.cdes.fr/index.php?id=fr69
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    Web page: http://www.kennesaw.edu/naase
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    Related research

    Keywords: NCAA; monopsony rent; cartel; reciprocal demand; cheating;

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    1. El-Hodiri, Mohamed & Quirk, James, 1971. "An Economic Model of a Professional Sports League," Journal of Political Economy, University of Chicago Press, vol. 79(6), pages 1302-19, Nov.-Dec..
    2. Lawrence M. Kahn, 2007. "Markets: Cartel Behavior and Amateurism in College Sports," Journal of Economic Perspectives, American Economic Association, vol. 21(1), pages 209-226, Winter.
    3. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
    4. George J. Stigler, 1974. "The Optimum Enforcement of Laws," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 55-67 National Bureau of Economic Research, Inc.
    5. McCormick, Robert E & Tollison, Robert D, 1984. "Crime on the Court," Journal of Political Economy, University of Chicago Press, vol. 92(2), pages 223-35, April.
    6. Hall, Thomas D & Lindsay, Cotton M, 1980. "Medical Schools: Producers of What? Sellers to Whom?," Journal of Law and Economics, University of Chicago Press, vol. 23(1), pages 55-80, April.
    7. 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.
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