Economics of Professional Sports In the U.S.

Catalog description

This course employs the models and theories developed in microeconomics to study the sports industry in the United States. The course applies three areas of economic theory to the study of professional sports (baseball, basketball, football and hockey) as well as intercollegiate sports. The three areas of economic theory utilized are industrial organization, public finance, and labor economics. Industrial organization theory is used to analyze the types of competition and market structure that exist in the sports industries. The analysis includes an exploration of the costs and benefits of market power as well as the role of the media and the government in the operation of sports franchises and leagues. Public finance theory is used to explore how cities have tied economic development to sports franchises, to analyze the impact of tax-based funding of stadiums, and to evaluate the costs and benefits of sports franchises to their community. Labor economic theory is used to investigate labor conflict and collective bargaining in professional sports as well as the role played by discrimination in professional sports labor markets. Finally, the course explores the existence of the unpaid professional student-athletes and their employer, the NCAA.