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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 | |