Solution Manual for Sports Economics, 1st Edition, David Berri

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Solution Manual for Sports Economics, 1st Edition, David Berri

Table of Contents

Preface

Part I: The Basics of Sports Economics

Chapter One: It’s Just Supply and Demand

1.0 The Wonder of Sports Economics!

1.1 Perception and Reality Don’t Always Match in Sports!

1.2 The Marshallian Method

1.3 Marshall and the Demand Curve

1.4 Just a Matter of Time

1.5 The Marshallian Cross

1.6 What Determines Ticket Prices?

1.7 “The Decision” Teaches Us How Market Impediments Have Unintended Consequences

1.8 What is the “Right” Price?

1.9 The Many Stories “The Decision” Teaches

1.10 Deductive vs. Inductive Reasoning

Chapter Two: Market Size and Wins: Two Approaches to the Same Question

2.0 Why People Hate the Yankees

2.1 From the Law of Demand to Team Revenue

2.2 Debating Team Costs

2.3 Why Do the Yankees Dominate?

2.4 Market Size and Wins: The Data from Major League Baseball

2.5 Modeling Market Size and Wins in Professional Sports

2.6 Modeling Payroll in Wins in Professional Sports

2.7 A Basic Model of Wins in Professional Sports

2.8 A Simple Guide to Evaluating Empirical Models

Appendix: Very Basic Regression Analysis

Part II: The Organization of Professional Sports

Chapter Three: For the Money or the Glory?

3.0 Rational Choice in Economics

3.1 Revenue and Profits in Major Professional Team Sports

3.2 Monopoly Comes to American Sports

3.3 Europeans Embrace Competition

3.4 Elasticity of Demand

3.5 Price Elasticity and Sports

Appendix 3A: The Utility Maximization Model

Appendix 3B: The Math of Elasticity

Chapter Four: The Competitive Balance Defense

4.0 History of Owners Pleading Poverty

4.1 The Competitive Balance Argument

4.2 The Reserve Clause

4.3 The Reverse Order Draft

4.4 Simon Rottenberg Defends the Free Market

4.5 Salary Caps, Luxury Taxes, Revenue Sharing, Oh My!

4.6 The Noll-Scully Measure of Competitive Balance

4.7 A Simple Snapshot of League Institutions

4.8 Two Competitive Balance Stories

4.9 Balancing Evolution

4.10 Do Leagues Want Competitive Balance?

Appendix: Standard Deviation Made Simple

Part III: The Market for Labor in Professional Sports

Chapter Five: Labor Negotiations in Sports

5.0 “Babe Ruth is Overpaid”

5.1 Differing Views on the Overpayment of Professional Athletes

5.2 Unrestricted and Restricted Labor Markets

5.3 The Economics of Labor Conflict

5.4 A History of Making Fans Angry

5.5 Why Can’t Fans Hold a Grudge?

Chapter Six: The Economic Value of Playing Talent

6.0 Everyone is Above Average

6.1 Measuring the Productivity of the Hitter in Baseball

6.2 Measuring the Productivity of the Pitcher in Baseball

6.3 The “ERA Problem” in Hockey

6.4 Measuring Worker Productivity in a Complex Invasion Sport: The Basketball Case Study

6.5 The Scully Approach to Measuring Marginal Revenue Product

6.6 The Promise and Reality of MRP Measurements

6.7 A Simple Approach

6.8 The Free Market Approach

6.9 Back to Marx and Clark

Chapter Seven: Discrimination in Sports

7.0 A Brief History of Race in Sports

7.1 The Economic Theory of Discrimination

7.2 The Empirical Evidence of Wages Discrimination in the NBA

7.3 Learning from Implicit Bias

7.4 National Origin Bias

7.5 He Really Looks Good Out There!

7.6 Challenges in the Study of Discrimination

Appendix: Learning from Control Variables

Chapter Eight: Women and Sports

8.0 Non-Market Interventions in Women Sports Organizations

8.1 The Lesson Learned – and Not Learned – from Demand Data

8.2 The Gender Wage Gap in the WNBA

8.3 The Highest Paid Women in Professional Team Sports in North America

8.4 Are Men Really Better Leaders?

8.5 To Understand Gender and Sports, You Need to Look Beyond Markets

Appendix: Models of Gender and Sports

Part IV: Sports and Government

Chapter Nine: Economics of College Sports

9.0 The Highest Paid Public Employee

9.1 Some History of the NCAA

9.2 Competitive Balance and the NCAA

9.3 Even More Competitive Imbalance in Women’s College Sports

9.4 Worker Productivity and Exploitation in the NCAA

9.5 Coaching College Sports

9.7 Title IX Enforcement: Myth and Measurement

9.8 Profitability in College Sports

Chapter Ten: Subsidizing Sports

10.0 If You Build It, Does Anyone Benefit?

10.1 Economists Agree?

10.2 The Value of Sports – Industry Approach vs. Economic Theory

10.3 The Value of Sports – the Empirical Evidence

10.4 Government Ignoring Economists – at the Local and Federal Level

10.5 The Economic Cost of International Parties

10.6 Sports Make Us Happy

Part V: The Efficiency of Sports Markets

Chapter Eleven: Moneyball Off and On the Field

11.0 The Moneyball Story

11.1 The First Sports Economics Article Proposes a Rationality Test

11.2 Testing the Moneyball Hypothesis in Baseball and Soccer

11.3 Testing the Moneyball Hypothesis in Basketball

11.4 Moneyball in the Draft

11.5 Moneyball on the Field

11.6 Adam Smith vs. NBA Coaches

11.7 Systematically Evaluating Coaches

11.8 So do Teams need a Coach?

11.9 Moneyball? Well, it depends….

Appendix: Moneyball Models

Appendix A: Introduction to Performance Measures

Glossary

Index

References

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