Monitoring Cartel Behavior and Stability: Evidence from NCAA Football
We investigate self-monitoring and enforcement of the NCAA player recruitment agreement in the context of a cartel model with incomplete information and reaction lags. Empirical results from a panel probit model strongly support the predictions of the model. Lagged winning percentage, the discount rate of the decision maker, the institution’s commitment to nonathletic activities, and the institution’s demand-cost configuration are all important predictors of institutions being placed on probation for violating the cartel rules.
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Volume (Year): 75 (2009)
Issue (Month): 3 (January)
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