ECON 318 - The Economics of Sports

Credits: (3)
Prerequisite(s): ECON 101.
In this class students will examine economic issues surrounding the sports industry. The course is organized into three major sections: Industrial Organization, Public Finance, and Labor Markets. We will examine the industrial structure of pro sports by briefly exploring the history of sports leagues and analyzing the impact that the monopoly-like status has on the profitability of teams, player salaries, fan welfare, and the size of subsidies that state and local governments are paying to sports franchises in the form of stadium construction. We will examine the power of franchises to extract subsidies from state and local taxpayers. We will explore the techniques that economists use in determining the economic impact of stadium construction and franchise location on a local and state economy. Questions dealing with player salaries and their impact on the sport will be examined from a number of perspective.