Sports Economics

by Fort, Rodney D.

• ISBN13: 9780131704213
• ISBN10: 0131704214
• Edition: 2nd
• Format: Hardcover
• Copyright: 2007-01-01
• Publisher: Prentice Hall

Summary

Forts Sports Economics, 2/e is the only text that provides enough content and rigor for a course taken primarily by economics majors.

Table of Contents

Preface	ix
Warm-Up: The Business of Sports	1	(12)
Putting the Business of Sports in Perspective	2	(1)
Sports Really Are Big Business	3	(1)
Befuddled Fans	4	(2)
Player Skepticism and Owner Exasperation	6	(7)
PART I: DEMAND, SUPPLY, AND SPORTS MARKET OUTCOMES	13	(193)
Demand and Sports Revenue	13	(39)
Scarcity in Sports	14	(5)
Demand Theory in Sports	19	(6)
Lessons from Demand	25	(1)
Market Power	25	(5)
Willingness to Pay and Consumers' Surpluses	30	(3)
Price Elasticity, Total Revenue, and Marginal Revenue	33	(3)
Lessons from Total and Marginal Revenue	36	(4)
Elasticity and Price Discrimination	40	(3)
Revenue Data	43	(9)
The Market for Sports Broadcast Rights	52	(40)
Setting the Stage: The Media in Sports	53	(1)
Ads and Preference Formation	54	(5)
Basics of the Sports Broadcast Rights Market	59	(2)
Sports Leagues and Their Broadcast Rights	61	(4)
Media Provider Ownership of Sports Teams	65	(6)
Firms and Their Advertising Choice	71	(1)
Extending the Definition of the MRP of Ads from the Advertiser's Perspective	72	(4)
The Beer Wars	76	(2)
Sponsorship	78	(1)
Big Rights Money and Its Impacts	79	(13)
Team Cost, Profit, and Winning	92	(41)
Profit Maximizing Owners?	93	(2)
The Short Run Versus the Long Run	95	(1)
Short-Run Production and Costs	96	(4)
Long-Run Production and Costs	100	(9)
Profit Analysis	109	(4)
Profits and Quality Choice in the Long Run	113	(4)
Real-World Case Study: The San Antonio Spurs	117	(16)
Sports Market Outcomes, Part I: Leagues, Team Location, Expansion, and Negotiations	133	(31)
Why Leagues? Making Play and Profits	134	(5)
Territory Definition and Protection	139	(2)
Expansion and Relocation	141	(16)
Negotiations	157	(7)
Sports Market Outcomes, Part II: Leagues and Competitive Balance	164	(42)
Competitive Imbalance	165	(15)
Remedies for Competitive Imbalance	180	(26)
PART II: THE MARKET FOR TALENT AND LABOR RELATIONS	206	(131)
The Value of Sports Talent	206	(49)
The Value of Athletes	207	(5)
The Marginal Revenue Product Explanation	212	(5)
Equilibrium in the Talent Market: Graphical Analysis	217	(2)
Real-World MRP Insights	219	(9)
The Value of Athletes: Special Cases	228	(5)
Discrimination in Pay and Hiring: Introduction	233	(9)
Economic Findings on Pay Discrimination	242	(1)
Discrimination in Hiring	243	(12)
The History of Player Pay	255	(34)
Restricting Competition over Talent	256	(2)
Restricting Competition over Incoming Players: The Draft	258	(1)
Restricting Competition over League Players: The Reserve Clause	259	(5)
The Value of Reduced Competition over Players	264	(7)
What About Competitive Balance?	271	(18)
Labor Relations in Pro Sports	289	(48)
Modern Sports Labor Relations	290	(7)
Union Goals, Organizational Problems, and Governance	297	(9)
Basic Bargaining: Game Theory	306	(5)
Work Stoppages	311	(5)
Labor Relations in MLB	316	(4)
Labor Relations in the NBA	320	(5)
Labor Relations in the NFL	325	(4)
Labor Relations in the NHL	329	(8)
PART III: GOVERNMENT AND THE SPORTS BUSINESS	337	(119)
Subsidies and Economic Impact Analysis	337	(41)
The Logic of Sports Team Subsidies	339	(8)
Cost-Benefit Analysis Concepts in Sports	347	(12)
Estimates of Subsidy Costs	359	(2)
Estimates of Subsidy Benefits	361	(9)
Are the Costs of Subsidies Worth It?	370	(8)
The Stadium Mess	378	(39)
Rational Actor Explanations in Politics: General Insights	379	(5)
Owners as Beneficiaries of Rational Actor Subsidy Politics	384	(8)
The Role of Leagues in Rational Actor Subsidy Politics	392	(3)
The Stadium Mess Explained	395	(3)
Direct Democracy and the Stadium Mess	398	(7)
First Down and $782 Million to Go in Seattle	405	(6)
Altering the Politics of Stadium Subsidies	411	(6)
Taxes, Antitrust, and Competition Policy	417	(39)
Taxes	418	(7)
Antitrust	425	(5)
The Impacts of Special Tax and Antitrust Status	430	(7)
Rational Actor Politics, Taxes, and Antitrust	437	(4)
Competition Policy	441	(15)
PART IV: COLLEGE SPORTS	456	(66)
College Sports	456	(66)
College Sports Really Are Big Business	457	(1)
Demand and College Sports Revenue	458	(7)
The Market for College Sports Broadcasts	465	(6)
Cost, Profits, and Quality	471	(11)
Sports Market Outcomes: Athletic Departments, Conferences, and the NCAA	482	(6)
Sports Market Outcomes: Competitive Balance	488	(10)
The Value of College Sports Talent	498	(11)
A Synopsis of Remaining Issues	509	(13)
Glossary	522	(8)
Index	530