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Agency Behavior in a Nonprofit Setting: Effects of the 1984 Supreme Court NCAA Decision

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Author Info
Kathleen A. Carroll ()
Brad R. Humphreys ()

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Abstract

The NCAA is commonly viewed as a cartel. We model the cartel relationship between the member teams and the NCAA central organization as a principal-agent relationship. Our model predicts imperfect agency behavior on the part of the NCAA with corresponding overregulation relative to the level preferred by the member teams. We empirically test the model by examining the impact of the 1984 Supreme Court decision that reassigned the telecast rights for intercollegiate football from the NCAA to the individual member teams. Our empirical estimates of telecasts, attendance, and competitive balance support the prediction of imperfect agency behavior by the NCAA.

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File URL: http://www.umbc.edu/economics/wpapers/wp_03_106.pdf
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Publisher Info
Paper provided by UMBC Department of Economics in its series UMBC Economics Department Working Papers with number 03-106.

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Length: 29 pages
Date of creation: Oct 2003
Date of revision:
Handle: RePEc:umb:econwp:03106

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Postal: UMBC Department of Economics 1000 Hilltop Circle Baltimore MD 21250, USA
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Related research
Keywords: NCAA; Intercollegiate Football; Broadcast Regulation; Antitrust Policy;

Find related papers by JEL classification:
L31 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Nonprofit Institutions; NGOs
L44 - Industrial Organization - - Antitrust Issues and Policies - - - Antitrust Policy and Public Enterprise, Nonprofit Institutions, and Professional Organizations
L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism

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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.:
  1. Rodney Fort & James Quirk, 1995. "Cross-subsidization, Incentives, and Outcomes in Professional Team Sports Leagues," Journal of Economic Literature, American Economic Association, vol. 33(3), pages 1265-1299, September. [Downloadable!] (restricted)
  2. E. Eckard, 1998. "The NCAA Cartel and Competitive Balance in College Football," Review of Industrial Organization, Springer, vol. 13(3), pages 347-369, June. [Downloadable!] (restricted)
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This page was last updated on 2009-12-7.


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