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The Ericson Case: Comment

Author

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  • Alexander Dilger

    (Ernst Moritz Arndt University)

Abstract

Ericson argued in this journal that the Bosman ruling, the abolition of transfer fees after the expiration of contracts, is inefficient. But, Ericson's model is implausible because transfers in only one direction are assumed and the so-called transfer fees are indirect salary payments. His model is also inconsistent because of double counting of salaries in the case of free agency. Furthermore, even within his model the efficiency of the Bosman ruling can be shown by assuming lifetime contracts. The real danger to efficiency is new considerations of the European Commission to abolish transfer fees before the expiration of contracts.

Suggested Citation

  • Alexander Dilger, 2001. "The Ericson Case: Comment," Journal of Sports Economics, , vol. 2(2), pages 194-198, May.
  • Handle: RePEc:sae:jospec:v:2:y:2001:i:2:p:194-198
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    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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