BG2SportsF11

BG2SportsF11 - Sports Economics Book Guide Two Chapters...

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Unformatted text preview: Sports Economics Book Guide Two Chapters Three of Szymanski (2009) September 15, 2011 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Why did Major League Baseball pay $280 million to the Players Association in 1990? What is the economists’ critique of monopoly power? Why are high prices not necessarily a problem for society? Be sure to note the issues of “deadweight loss”, impact on innovation, and impact on government policy. a. When did the United States begin to legislate against monopoly power? b. When did the English Parliament start to legislate against monopoly power? c. When did the European Union start to legislate against monopoly power? What is “perfect price discrimination”? What are two problems with price discrimination? Explain the following: “Professional team sports leagues are classic, even textbook, examples of business cartels” Do owners in professional sports make a profit? How are these profits concealed? Explain your answers. How many incarnations of the American Football League existed before the AFL was able to merge with the NFL? What is the impact of a rival league? Why are rival leagues in sports not likely to succeed? What is “the competitive balance defense”? Note the three core propositions. Who is William Hulbert? What is the “reserve rule”? When was the “reserve rule” first defended in terms of competitive balance? Why did the defense of this rule change? When and how did Major League Baseball acquire immunity to anti-trust laws? How does Szymanski explain the relationship between payroll and wins in different professional sports? How did the “reserve rule” end in Major League Baseball? What is the Coase Theorem or Invariance Principle? Who said: “We’re 26 Republicans who vote Socialist!” What does this statement mean? Why would a union in sports agree to a salary cap? What is the “retain and transfer system”? When was this overturned? What is the Bosman case? ...
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