The Economics of College Sports: Cartel Behavior vs. Amateurism
This paper studies intercollegiate athletics in the context of the theory of cartels. Some point to explicit attempts by the National Collegiate Athletic Association (NCAA) to restrict output and payments for factors of production as evidence of cartel behavior. Others argue that such limits enhance product quality by preserving amateurism. I find that the NCAA’s compensation limits on athletes lead to high levels of rents from the entertainment revenues produced by the athletes. The athletes producing these rents are disproportionately African-American, while the beneficiaries are primarily white. The rents are typically spent on coaches’ salaries, facilities, and nonrevenue sports. Although athletic departments considered as businesses lose money on average, there is some evidence, although not unanimous, that they generate alumni contributions, state appropriations, and additional student applications.
|Date of creation:||Jun 2006|
|Date of revision:|
|Publication status:||published in: Journal of Economic Perspectives, 2007, 21 (1), 209-226|
|Contact details of provider:|| Postal: |
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
|Order Information:|| Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany|
References listed on IDEAS
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.:
- Betsey Stevenson, 2010.
"Beyond the Classroom: Using Title IX to Measure the Return to High School Sports,"
The Review of Economics and Statistics,
MIT Press, vol. 92(2), pages 284-301, May.
- Betsey Stevenson, 2006. "Beyond the classroom: using Title IX to measure the return to high school sports," Working Paper Series 2006-44, Federal Reserve Bank of San Francisco.
- Betsey Stevenson, 2010. "Beyond the Classroom: Using Title IX to Measure the Return to High School Sports," CESifo Working Paper Series 2959, CESifo Group Munich.
- Betsey Stevenson, 2010. "Beyond the Classroom: Using Title IX to Measure the Return to High School Sports," NBER Working Papers 15728, National Bureau of Economic Research, Inc.
- Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
- Hausman, Jerry A & Leonard, Gregory K, 1997. "Superstars in the National Basketball Association: Economic Value and Policy," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 586-624, October.
- Franklin G. Mixon, Jr. & Len J. Trevi�O, 2004. "How Race Affects Dismissals of College Football Coaches," Journal of Labor Research, Transaction Publishers, vol. 25(4), pages 645-656, October.
- 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.
- Brad R. Humphreys, 2003.
"The Relationship Between Big-Time College Football and State Appropriations to Higher Education,"
UMBC Economics Department Working Papers
03-102, UMBC Department of Economics.
- Brad R. Humphreys, 2006. "The Relationship Between Big-Time College Football and State Appropriations for Higher Education," International Journal of Sport Finance, Fitness Information Technology, vol. 1(2), pages 119-128, May.
- John J. Siegfried & Molly Gardner Burba, 2003. "The College Football Association Television Broadcase Cartel," Vanderbilt University Department of Economics Working Papers 0320, Vanderbilt University Department of Economics.
- Daniel Sutter & Stephen Winkler, 2003. "NCAA Scholarship Limits and Competitive Balance in College Football," Journal of Sports Economics, , vol. 4(1), pages 3-18, February.
- Lawrence DeBrock & Wallace Hendricks & Roger Koenker, 1994. "The Economics of Persistence: Graduation Rates of Athletes as Labor Market Choice," Working Papers _001, University of Illinois at Urbana-Champaign, revised 1996.
- Lawrence DeBrock & Wallace Hendricks & Roger Koenker, 1996. "The Economics of Persistence: Graduation Rates of Athletes as Labor Market Choice," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 513-539.
- Carroll, Kathleen A. & Humphreys, Brad R., 2000. "Nonprofit decision making and social regulation: the intended and unintended consequences of Title IX," Journal of Economic Behavior & Organization, Elsevier, vol. 43(3), pages 359-376, November.
When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp2186. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak)
If references are entirely missing, you can add them using this form.