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“The Ericson Caseâ€

Author

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  • Alexander Dilger

    (Ernst-Moritz-Arndt-University Greifswald)

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 Caseâ€," Journal of Sports Economics, , vol. 2(2), pages 194-198, May.
    • Handle: RePEc:sae:jospec:v:2:y:2001:i:2:p:194-198
    DOI: 10.1177/152700250100200207
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    References listed on IDEAS

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    1. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    2. Peter Antonioni & John Cubbin, 2000. "The Bosman Ruling and the Emergence of a Single Market in Soccer Talent," European Journal of Law and Economics, Springer, vol. 9(2), pages 157-173, March.
    3. Scully, Gerald W., 1995. "The Market Structure of Sports," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226743950, June.
    4. Thomas Ericson, 2000. "The Bosman Case," Journal of Sports Economics, , vol. 1(3), pages 203-218, August.
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