The Economics of Sports
6th Edition
ISBN: 9781138052161
Author: Michael A. Leeds, Peter von Allmen, Victor A. Matheson
Publisher: Routledge
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 4P
To determine
Explain the changes in the price of ticket before and after the success of championship.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
One of the reasons that the move of the Oakland Raiders to LA was blocked by the NFL was:
The Raiders had a contract with the city of Oakland that still had five years left on it
It would infringe on the monopoly of the LA Rams
Oakland residents had signed a petition with over 100,000 signatures protesting the move.
A majority of players on the team had not endorsed the move
Over-saturation And Changes In Viewing Habits The Most Likely Explanations For NFL's Ratings Dip
Why Secondary Ticket Prices For NHL Finals Are Higher Than For NBA Finals In 2018
What could both the NFL and NHL learn about their pricing and output strategies from our current module? (Consumer Choice theory and utility maximization) What similar issues does your future career's industry face?
The demand for NHL players can be written as: Qd=300-W , where Qd - number of players demanded by the league, W - wage of the player (you can think about it as of price). Marginal revenue: MR=300-2Q The supply of players: Qs=W, where Qs - number of players willing to play. ME=2Q .
a) Imagine that both sides of the market are perfectly competitive. What is the equilibrium number of players in the league and what is the equilibrium wage? Show it on a graph.
b) Imagine that players are represented by a union (monopoly), and the NHL teams compete for the players. What is the equilibrium number of players (Qu) and equilibrium wage (Wu) in this case? Show it on a graph.
c) Imagine that NHL makes all the decision as a single entity (monopsony), and the players are not unionized. What is the equilibrium number of players (QNHL) and equilibrium wage (WNHL) in this case? Show it on a graph.
d) What is going to be the equilibrium number of players in the league and what is the…
Knowledge Booster
Similar questions
- There are a variety of factors that influence our decision to attend sporting events. These factors include: fan motivation, game attractiveness, economic factors, competitive factors, demographic factors, stadium factors, value of sport to the community, sports involvement, and fan identification. For this discussion, list and describe the two types of economic factors that can affect game attendance.arrow_forwardLeagues that follow the "Hulbert Model" will on average earn A profits than those that don't. One reason for that is that teams under the Hulbert Model tend to be A/arrow_forwardWhich of the following is an economics sub-discipline that is not typically applied to sports economics? Select all that apply. O International trade Public finance O Labor economics Environmental economics Industrial organizationarrow_forward
- Is there an economic justification to pay the baseball player Alex Rodriguez $25 million a year? The quarterback Peyton Manning makes $14 million per year. Has this market gotten completely out of hand? Can there be any justification to some of the salaries paid? If so, what are the justifications? What impact do these salaries have on the sport? Are there good economic reasons for teams to pay these salaries?arrow_forward1) The NCAA operates as a(n): A) Natural monopoly. B) For-profit cartel. C) Incidental cartel. D) Perfect-competitor in collegiate athletics. HOW SO ??arrow_forwardShould free agency change the allocation of players across team? Will this effect competitive balance?arrow_forward
- as an avid advocate for the adoption of ethical codes in sport, provide a description of Russia doping violationarrow_forwardwhat will happen to the supply of the Blu-rays players if a new breakthrough in manufacturing technology reduces the cost of producing Blu-rays by half?arrow_forwardThe English Premier League currently has no salary cap but is considering implementing one. They are doing this, in part, to reduce payroll disparities across teams that create competitive imbalance. How would the reduction in payroll imbalance affect the Gini Coefficient for the English Premier League?arrow_forward
- A university football team faces the following demand schedule shown for tickets for each home game it plays. The team plays in a stadium that holds 60,000 fans. It estimates that its marginal cost of attendance, and thus for tickets sold, is zero. The table below reflects this data: Price per Ticket ($) Tickets per Game 100 80 60 40 20 0 Total revenue = $ 20,000 40,000 60,000 80,000 100,000 Using this information, calculate how much total revenue the team will earn.arrow_forwardThe costs of tickets and transportation to and from the game, as well as the amount of time the fan invests in attending the event is called: Owayfinding demands sport supply and demand consumption cost ancillary costarrow_forwardThere is substantial revenue sharing in the NFL. The Baltimore Ravens generated approximately $72 million in gate revenue (i.e. revenue from ticket sales) in 2019. The NFL as a whole generated approximately $2.4 billion in gate revenue in 2019. Use this information to calculate gate revenue for the Ravens after revenue sharing occurs.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning