Prerequisite: ECON 2010.
Quantitative Reasoning (Statistics/Logic)
A variety of economic methods can be applied to sports. The class begins with a market analysis of the professional sports industry, including cost accounting, marketing strategies and profitability in the design of sporting venues. Regional analysis is used to understand the economic effect of building a new stadium. Econometric methods are used to relate sports performance statistics to athlete salaries and team profits. Professional teams have a natural tendency to become monopolies. The history of antitrust law has guaranteed market power for professional teams, but competition, other sports and other entertainment options limits that power. The wages and work of athletes are studied from the viewpoint of labor economics. Racial and gender discrimination is discussed as a historically important aspect of the professional athletic labor market. The economics of player's unions, league monopolies and contract negotiation is analyzed in terms of the theory of games. In many cases the analysis is extended to a discussion of reforms that are fairer and more efficient.