Economics of Sports: Math
Review
BEN VAN KAMMEN, PHD
PURDUE UNIVERSITY
Motivation
Students come into ECON 390 with diverse math
backgrounds, and it isnt realistic to assume everyone
knows the same concepts. So the purpose of this
review is:
1.To communica
The Sports Product
Market - Part 2
ECONOM I CS OF S P ORTS ( ECON 3 2 5 )
BEN VA N K A M M EN, P H D
Are sports broadcasts excludable?
Assume for a moment they are: how should viewership be priced vis-vis game tickets?
Depends if the two are substi
The Sports Labor
Market
ECONOM I CS OF S P ORTS ( ECON 3 2 5 )
BEN VA N K A M M EN, P H D
Sports production function
Americans love a winner. And will not tolerate a loser . . . .
How do you produce a winning team?
Winning probability is a function o
The Public
Economics of
Sports
ECONOMICS OF SPORTS (ECON 325)
BEN VAN KAMMEN, PHD
Introduction
For most economists, the burden of showing the need for government intervention in markets
falls on the person arguing in favor of it. Here I mean:
Mandates/re
The Sports Labor
Market Part 2
ECONOM I CS OF S P ORTS ( ECON 3 2 5 )
BEN VA N K A M M EN, P H D
Introduction
Player salaries primarily reflect expected future marginal revenue product.
A fraction of it, depending on the players bargaining position
The Simple Linear
Regression Model
ECONOMETRICS (ECON 360)
BEN VAN KAMMEN, PHD
Outline
Definition.
Deriving the Estimates.
Properties of the Estimates.
Units of Measurement and Functional Form.
Multiple Regression.
Definition of Simple Linear Regression
C
Economic Theory
Applied to Sports
ECONOMICS OF SPORTS (ECON 325)
BEN VAN KAMMEN, PHD
Introduction
This is a lecture about miscellaneous econom(etr)ics applications that dont neatly fit in the
product or labor market categories.
They apply economic theory
The Sports Labor
Market Part 3
ECONOM I CS OF S P ORTS ( ECON 3 2 5 )
BEN VA N K A M M EN, P H D
Introduction
In this lecture we replicate, in an introductory way, and evaluate the methods used to measure
player and coaching skill in sports.
Porte
The Sports Product
Market - Part 3
ECONOM I CS OF S P ORTS ( ECON 3 2 5 )
BEN VA N K A M M EN, P H D
Competition in sports, 2 different notions
On the field. Defined as:
o Close games,
o Absence of extremely dominant and wretched teams, parity.
o Chu
The Sports Product
Market
ECONOM I CS OF S P ORTS ( ECON 3 2 5 )
BEN VA N K A M M EN, P H D
What kind of good is sports?
All goods can be classified according to the combination of 2 properties they have (or dont):
Rivalry in consumption and
Exclud
Introduction to the
Economics of Sports
P RI NCI P L ES OF ECONOM I CS ( ECON 3 9 0 )
BEN VA N K A M M EN, P H D
What students will learn in this class
The economic way of thinking.
The most valuable skill students will practice.
A broadly applicabl