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| Preface | |
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| Introduction and Review of Economic Concepts | |
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| Introduction | |
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| Three Major Areas of Economics Explored | |
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| The Role of Models | |
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| Positive Versus Normative Economics | |
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| Biographies | |
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| Sports History and Balance of Coverage | |
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| The Organization of the Text | |
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| Additional Support and Sources | |
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| Review of the Economist's Arsenal | |
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| Introduction | |
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| Opportunity Cost and Comparative Advantage | |
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| A Reintroduction to Supply and Demand | |
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| Demand, Supply, and Equilibrium | |
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| Supply and Demand Curves and the Price of Baseball Cards | |
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| Price Ceilings and the Benefits of Scalping | |
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| Market Structures: From Perfect Competition to Monopoly | |
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| A Note on the Definition of Output | |
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| Perfect Competition | |
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| Monopoly and Other Imperfectly Competitive Market Structures | |
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| Applying the Models: Evaluating an Increase in Costs | |
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| The Development of Professional Sports | |
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| Choices under Uncertainty | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| Utility Functions, Indifference Curves, and Budget Constraints | |
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| Constrained Maximization | |
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| Using Indifference Curves and Budget Constraints: The Rise of Soccer and Baseball | |
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| Regression Analysis in Brief | |
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| Multiple Regression and Dummy Variables | |
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| The Industrial Organization of Sports | |
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| Sports Franchises as Profit-Maximizing Firms | |
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| Introduction | |
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| The Importance of Leagues | |
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| Setting the Rules | |
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| Limiting Entry | |
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| Controlling Entry as Cooperative Behavior | |
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| League Contraction | |
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| Marketing | |
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| What Are Profits and How Are They Maximized? | |
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| A Detailed Look at Revenue | |
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| Gate Revenue | |
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| Television Revenue | |
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| The Effects of Revenue Sharing | |
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| Cost | |
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| Opportunity Cost-Teams on the Move | |
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| Taxes, Profit, Owner Behavior, and Vertical Integration | |
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| Turning Losses into Profits: The Accounting Game | |
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| Using Sports to Maximize Profits Elsewhere | |
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| Operating Income, Book Profit, and Bill Veeck | |
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| Soccer's Alternative Business Model | |
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| Profit Maximization in Soccer | |
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| The Impact of Promotion and Relegation | |
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| The Financial Dangers of an Open System | |
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| Soccer in America: The MLS and a Single-Entity League | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| Monopoly and Antitrust | |
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| Introduction | |
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| What's Wrong with Monopoly? | |
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| Monopolists and Deadweight Loss | |
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| Promotion, Relegation, and Monopoly Power | |
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| Monopolists and Price Discrimination | |
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| Consumer Surplus and Personal Seat Licenses | |
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| Monopoly Stood on Its Head: A Brief Introduction to Monopsony | |
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| What's Right with Monopoly? | |
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| Barriers to Entry | |
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| Society's Response to Monopoly and Monopsony: Antitrust Laws | |
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| An Important Anomaly: Baseball's Antitrust Exemption | |
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| The Economic Impact of the Antitrust Exemption | |
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| Limited Exemptions: The NFL and Television | |
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| The NCAA: An Incidental Cartel | |
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| Prisoner's Dilemma: How Rational Actions Lead to Irrational Outcomes | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| An Alternative Application of Game Theory | |
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| Competitive Balance | |
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| The Fan's Perspective | |
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| The Owners' Perspective | |
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| The Effect of Market Size | |
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| How Competitive Balance can be Measured | |
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| Within-Season Variation | |
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| Between-Season Variation | |
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| Attempts to Alter Competitive Balance | |
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| Revenue Sharing | |
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| Salary Caps and Luxury Taxes | |
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| The Reverse-Order Entry Draft | |
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| Schedule Adjustments in the NFL | |
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| The Effects of Attempts to Alter Competitive Balance | |
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| The Coase Theorem and Competitive Balance | |
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| Salary Caps | |
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| The Draft | |
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| Revenue Sharing and Luxury Taxes | |
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| Promotion and Relegation | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| Two Additional Ways to Measure Competitive Balance: The Lorenz Curve and the Markov Chain Method | |
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| Public Finance and Sports | |
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| The Public Finance of Sports: The Market for Sports Franchises | |
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| Introduction: How Walter O'Malley Changed the Landscape of Sports | |
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| The Competition for Teams and the Value of a New Stadium | |
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| How Teams Exploit Market Forces | |
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| Leagues, Cities, and Monopoly Power | |
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| The All-Or-Nothing Demand Curve | |
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| The Winner's Curse | |
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| How the Olympics and the World Cup Induce Overspending | |
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| The Form and Function of Stadiums and Arenas | |
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| What's in a Name? | |
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| The Size and Shape of Facilities | |
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| Location, Location, Location | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| The Costs and Benefits of a Franchise to a City | |
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| Introduction | |
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| Why Do Cities Do It? The Benefits of a Franchise | |
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| Privately Built Facilities | |
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| Is a Stadium a Worthwhile Investment for a City? | |
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| Why Governments Subsidize Sports Franchises | |
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| Multiplier Effects | |
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| Can Anyone Win at This Game? | |
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| The Impact of Special Events | |
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| A Public Choice Perspective | |
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| Financing Facilities | |
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| An Economic View of Taxes: Who Should Pay? | |
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| Sales Taxes | |
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| Incremental Financing | |
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| Taxes That Broaden the Burden | |
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| The Benefits of Debt | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| The Labor Economics of Sports | |
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| An Introduction to Labor Markets in Professional Sports | |
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| Introduction | |
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| Overview of Labor Supply and Demand | |
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| Labor Supply | |
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| Labor Demand | |
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| Market Demand and Equilibrium | |
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| Imperfect Competition and the Demand for Labor | |
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| Human Capital Theory | |
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| Monopsony and Other Restrictions of Competitive Markets | |
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| Monopsony | |
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| The Reserve Clause | |
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| Free Agency | |
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| Final Offer Arbitration | |
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| Salary Caps | |
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| The Draft | |
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| Empirical Evidence on Restricted Player Movement and Player Salaries | |
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| The Impact of Rival Leagues | |
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| The Economics of Tournaments and Superstars | |
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| Evidence on the Potential Inefficiency of Tournaments | |
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| What Is a Gold Medal Worth? | |
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| An Exception to the Rule: NASCAR | |
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| The Distribution of Income | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| The Labor-Leisure Choice Model of Indifference Curves | |
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| Labor Unions and Labor Relations | |
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| Introduction | |
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| A Brief Introduction to the Economics of Unions | |
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| An Overview of Strikes | |
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| Labor Conflict in Professional Sports | |
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| A Change of Pace: The 2002 Baseball Agreement | |
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| Thrown for a Loss: The NFLPA and Salaries in Professional Football | |
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| Reversal of Field: Recent Settlements in Basketball and Hockey | |
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| Professional Tennis Associations | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| Discrimination | |
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| Introduction | |
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| Becker's Theory of Labor Discrimination | |
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| Different Forms of Discrimination in Professional Sports | |
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| Employer Discrimination | |
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| Does Anyone Win with Employer Discrimination? | |
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| Employee Discrimination | |
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| Consumer Discrimination | |
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| Discrimination by National Origin in European Soccer | |
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| Positional Discrimination or Hiring Discrimination | |
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| Gender Equity-A Special Case? | |
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| Title IX and Discrimination in College Sports | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| Sports in the Not-for-Profit Sector | |
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| The Economics of Amateurism and College Sports | |
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| Introduction | |
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| The Troublesome Concept of Amateurism | |
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| A Brief History of Amateurism and "the Olympic Ideal" | |
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| Amateurism, Profits, and the NCAA | |
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| The Code of Amateurism: Academic Ideals or Monopsony Power? | |
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| Pay for Play: The Grant-in-Aid | |
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| What's in a Name? The Lot of the "Student-Athlete" | |
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| Measuring the Net Value of Athletes to Colleges | |
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| Dividing the Profits: The NCAA as an Efficient Cartel | |
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| College as an Investment for the Student-Athlete | |
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| The NCAA and the Uneasy Coexistence of Athletics and Academia | |
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| Why Schools Promote Big-Time Athletic Programs | |
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| The Difficulty in Regulating College Sports | |
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| The Knight Commission on Intercollegiate Athletics | |
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| Academic Standards: Bulwarks of Integrity or Barriers to Entry? | |
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| Academic Standards as a Barrier to Entry | |
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| The Finances of College Athletics | |
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| Do Colleges Make a Profit from Athletics? | |
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| College Athletics and Profit Maximization | |
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| Biographical Sketch | |
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| Summary | |
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| Discussion Questions | |
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| Problems | |
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| Works Cited | |
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| Index | |