Solutions Manual For The Economics of Sports 7e Michael Leeds, Peter von
v v v v v v v v v v v v
Allmen, Victor Matheson v v
Instructor’svManualvforvThevEconomicsvofvSports,v7thveditionvRevise
dvandvupdatedvbyvDrvQivGe,vVassarvCollege,vNewvYork,vUSA
Chapter 1 v
Economics and Sports
v v
◼ Outline
Introduction
1.1 ThevOrganizationvofvthevText
1.2 BabevRuthvandvComparativevAdvantage
Opportunityv Costs
AbsolutevandvComparativevAdvantagevBiographica
lvSketch:vBabevDidriksonvZahariasvSummary,vDiscussio
nvQuestions,vProblems
◼ Teaching Tips and Additional Examples
v v v v
Avuniquevchallengevinvteachingvavcoursevinvtheveconomicsvofvsportsvisvrefiningvstudentvexpectationsvforvthev
class.vIndeed,vsomevprofessorsvandvdepartmentsvhavevbeenvreluctantvtovoffervavcoursevinvthisvfieldvovervwor
riesvthatvitvwillvattractvstudentsvwishingvtovtakevav“blow-
off”vcoursevorvthatvthevtopicvofvsportsvcannotvbevmadevrigorousvenoughvtovbevincludedvinvavcollegevcurricul
um.vTherefore,vitvisvimportantvfromvthevveryvbeginningvofvthevclassvtovemphasizevthatvthevcoursevisvfirstvand
vforemostvanveconomicsvclassvandvthatvsportsvmerelyvsuppliesvthevcontextvinvwhichvtovstudyveconomics.vAsv
notedvbyvavcolleague,v“Expectationsvcanvsometimesvbevseriouslyvoffvtrackvforvthosevstudentsvwhovmayvhav
evchosenvthevcoursevmorevbecausevtheyvsawvthevwordv‘sports’vinvthevtitlevrathervthevwordv‘economics.’v”vAs
vyouvgovovervthevsyllabus,vitvisvimportantvtovemphasizevtheveconomicvtheoriesvthatvyouvlookvforwardvtovcov
eringvasvopposedvtovthevsportsveventsvandvhistory.vAsvthevprerequisitesvforvthisvcoursevvaryvgreatlyvfromvsch
oolvtovschool,vasvdoesvthevintendedvaudience,vitvmayvbevworthwhilevtovcollectvinformationvfromveachvstuden
tvaboutvpastvcourseworkvinveconomicsvandvmathvinvordervtovtailorvthevclassvtovthevabilityvlevelvofvthevstudent
svenrolled.
Itvmayvbevhelpfulvtovstressvthatveconomicsvisvanvincrediblyvflexiblevsubjectvthatvcanvbevappliedvtovjustvaboutv
anyvfacetvofvlife.v Invthisvrespect,vasvthevcoursevprogressesvitvisvoftenvusefulvtovremindvthevstudentsvsomevpar
allelvapplicationvtovthevcurrentvtopic.v Thevkeyvisvtovshowvthatvtheveconomicvprinciplesv(andvthereforevthevri
gor)vdoesvnotvchangevevenvifvthevapplicationvofvthosevprinciplesvdo.v Thisvisvparticularlyvimportantvifvthevcla
ssvisvofferedvasvavlowervlevelvelectivevwithvminimalvprerequisitesvbutvendsvupvattractingvanvaudiencevprimari
lyvmadevupvofvseniorveconomicsvmajors.v Withvavdiversevdistributionvofvstudents,vthevemphasisvonvthevappli
cationvofveconomicsvwillvhelpvteachvthevprinciplesvtovthosevwhovmayvbevseeingvthesevconceptsvforvthevfirstvt
ime,vandvreinforcingvthemvtovthevmorevadvancedvstudents.
Itvmayvalsovbevworthwhilevtovpollvstudentsvaboutvtheirvfavoritevsportsvandvteams,vagainvtovtailorvthevclassvtovt
hevinterestsvofvstudentsvinvclass.vForvexample,vwhenvteachingvcompetitivevbalancevonevcanvdrawvexamplesvf
romvanyvleague,vandvusingvavsportvforvwhichvstudentsvinvclassvhavevexpressedvavpreferencevisvlikelyvtovkeepv
studentsvmorevinterestedvinvthevtopicvevenvasvthevtechnicalvdetailsvofvmeasuringvcompetitivevbalancevarevex
plained.vSimilarly,vavclassvwithvavlargevnumbervofvforeignvstudents,vforvexample,visvlikelyvtovexpress
,Instructor’svManualvforvThevEconomicsvofvSports,v7thveditionvRevise
dvandvupdatedvbyvDrvQivGe,vVassarvCollege,vNewvYork,vUSA
morevinterestvinvsoccervovervthev“bigvfour”vAmericanvleagues.vInvthisvrespectvthevinclusionvofvmorevinternati
onalvsportsvasvtheveditionsvprogressedvshouldvbenefitvthevstudentvbody.
AsvChapterv1vofvthevtextvnotes,vthevtextvexploresvsportsvasvitvappliesvtovthreevmajorvareasvofveconomics:vindu
strialvorganization,vpublicvfinance,vandvlabor.vAsvanvopeningvexercise,vyouvmightvconsidervaskingvthevclassvt
ovgivevexamplesvofvhowveconomicvforcesvimpactvprofessionalvandvmajorvamateurvsportsvwithoutvfirstvprompt
ingvthemvaboutvthevthreevareas.vOncevtheyvhavevaccumulatedvavgoodvlistvonvthevboard,vseevifvtheyvcanvdividev
thosevissuesvintovthevthreevareas.vSomevissues,vsuchvasvthosevrelatedvtovcompetitivevbalance,vwillvbevaddresse
dvinvmorevthanvonevarea—youvcanvnotevthatvasvyouvgovalong.
Chapterv1vspendsvavsignificantlyvtimevonvcomparativevadvantage,vsovbevpreparedvtovdivevrightvinvonvthevfirs
tvdayvofvclass.vAvfunvexercisevthatvutilizesvstudents’vsportsvknowledgevwhilevreinforcingvthevideavofvcompar
ativevadvantagevisvtovidentifyvothervmulti-
sportvathletesvandvexaminevtheirvcareervchoices.vCharlievWard,vthev1993vHeismanvTrophyvwinner,vchosevan
vNBAvcareervovervthevNFL,vBaseballvHall-of-
Famer,vDavevWinfieldvwasvdraftedvbyvthevNBA,vABA,vNFL,vandvMLB,vandvHalevIrwin,vav3-
timevU.S.vOpenvwinnervandvthevall-
timevwinningestvplayervonvthevSeniorvPGAvtour,vwasvavtopvdefensivevbackvforvthevUniversityvofvColorado.v
DeonvSandersvandvBovJacksonvwerevothervmulti-
sportvstars.vByronv“Whizzer”vWhite,vultimatelyvchosevavlawvcareervovervanvNFLvcareervevenvaftervleadingvt
hevleaguevinvrushingvinv1938.vWhiteveventuallyvbecamevavSupremevCourtvJustice.
◼ Additional Sources v
Throughoutvthevcoursevstudentsvwillvneedvtovkeepvabreastvofvcurrentvevents.vFortunately,vthisvrequiresvnoth
ingvmorevthanvaccessvtovthevInternet.vForveachvchaptervthisvmanualvincludesvexamplesvofvqualityvWebvsitesvt
hatvprovidevlotsvofvinformationvregardingvthevsportsvindustry.vForvthevinstructor,vtherevarevseveralvadditiona
lvsourcesvthatvarevworthvconsidering.
Film,vTelevision,vandvRadio:v Ifvyouvlikevtovsupplementvyourvclassesvwithvfilm,vwevrecommendvthevKenvBur
nsvseriesvBaseball.vItvisvdividedvintov18vepisodesv(“topvofvthevfirst”vthroughv“bottomvofvthevninth”).vEachvon
evconsidersvavdifferentvtopicvinvthevdevelopmentvofvprofessionalvbaseballvinvthevUnitedvStates.vBurnsvaddre
ssesveverythingvfromvattemptsvtovformvrivalvleaguesvtovthevhistoryvofvthevreservevclausevtovdiscrimination.v
BillvLittlefield’svOnlyvavGame,visvanvinformativevandvamusingvweeklyvradiovshowvappearingvonvNationalvP
ublicvRadio.vCheckvyourvlocalvlistingsvforvtimes.
TradevPublications:vStreetv&vSmith’svSportsvBusinessvJournal.vThisvweeklyvpublicationvprovidesvinterestin
gvprofilesvofvspecificvsports,vdatavonvattendance,varticles,vandvcommentariesvonvthevbusinessvaspectsvofvspor
ts.vWhilevavnormalvsubscriptionvisvnotvcheap,vavfarvlessvexpensivevsemester-
longvstudentvsubscriptionvisvavailable.vForvmorevinformation,vcheckvtheirvWebvsitevatvhttp://www.sportsbus
inessjournal.com/.
Podcasts:vPodcastsvarevsegments,vorvepisodesvthatvarevorganizedvviavavdigitalvmediavoutlet.v Theyvcanvbevlis
tenedvtovovervthevinternetvorvoftentimesvdownloadedvonvmanyvsmartphones.v Findingvrelevantvandvreliablev
podcastsvcanvbevveryvbeneficial;vtwovsourcesvcanvbevfoundvatvwww.econtalk.orgvandvwww.freakonomics.c
omv.vAvgoodvstartingvpointvmayvbevanvinterviewvbyvsportsveconomistvRogervNollvonvEconTalkvonvAugustv2
7th,v2012.v Slatevmagazine’sv‘HangvupvandvListen’vpodcastvisvanothervusefulvsource.
AcademicvJournals:vThevJournalvofvSportsvEconomicsvremainsvthev“mustvhave”vjournalvforvallvinstructorsvof
vavcoursevinvsportsveconomics.vForvsubscriptionvinformation,vgovtovthevSagevPublicationsvWebvsitevatvhttp://
www.sagepub.com.vOthervhighvquality,vsports-
themedvacademicvjournalsvwithvfrequentveconomicvcontentvincludevInternationalvJournalvofvSportsvFinanc
e,vJournalvofvSportvManagement,vJournalvofvSport
,Instructor’svManualvforvThevEconomicsvofvSports,v7thveditionvRevise
dvandvupdatedvbyvDrvQivGe,vVassarvCollege,vNewvYork,vUSA
andvSocialvIssues,vEuropeanvSportvManagementvQuarterly,vInternationalvJournalvofvSportvManagementvan
dvMarketing,vandvJournalvofvQuantitativevAnalysisvinvSports.
On-
linevSources:vwww.sportsbusinessnews.comvprovidesvgoodvinformationvandvreactionsvtovwhatvisvhappening
vinvsportsvfromvavbusinessvperspective.vYouvcanvevenvelectvtovreceivevtheirv“dailyvdose”vofvsportsvbusinessvne
ws.vwww.thesportseconomist.comvisvavblogvwrittenvbyvavgroupvofvthevtopveconomistsvinvthevfieldvandvconsis
tentlyvprovidesvinterestingveconomicvanalysisvofvcurrentvissuesvinvsports.
◼ Solutions to Back-of-Chapter Problems
v v v
1.1 UsevanvappropriateveconomicvtheoryvtovexplainvwhyvLeBronvJamesvmightvemployvsomeonevtovanswerv
hisvfanvmailvevenvifvhevcanvreadvthevlettersvandvtypevthevresponsesvmorevquicklyvthanvthevpersonvhevem
ploys?
Answer:
IfvLeBronvwerevablevtovanswervhisvfanvmailvmorevquicklyvthanvsomeonevhevhires;vt
hisvwouldvimplyvLeBronvhasvanvabsolutevadvantagevinvansweringvfanvmail.vLeBronvisvstil
lvlikely,vhowever,vtovhavevavcomparativevadvantagevinvplayingvbasketball,vandvthereforevh
evshouldvspecializevinvplayingvbasketballvandvhirevsomeonevelsevtovanswervhisvfanvmail.
1.2 Isvthevfollowingvstatementvtruevorvfalse?vExplainvyourvreasoning.v“Ivamvattendingvcollegevonvavfullv
athleticvscholarship,vsovthevopportunityvcostvofvattendingvcollegevisvzerovforvme.”
Answer:
False.vThevstudentvisvalsovgivingvupvhisvorvhervtime.vAvprimevexamplevofvthisvisvpl
ayersvwhovleavevcollegevearlyvtoventervthevpros.vThevopportunityvcostvofvattendingvcollegev
forvavtopvbasketballvplayervisvthevlostvchancevtovplayvinvthevNBA.
1.3 Fromv1946vthroughv1967,vthevplacekickervforvthevClevelandvBrowns,vLouvGroza,vwasvsuccessfulvo
nv54.9vpercentvofvhisvfieldvgoalvattempts.vInv2021,vthevBrowns’vkickervwasvCodyvParkey,vwhovwasvs
uccessfulvonv84.6vpercentvofvhisvattempts.vUsevthevtheoryvofvcomparativevadvantagevtovexplainvthev
massivevimprovementvinvthevBrowns’vkickingvgame.
Answer:
WhilevGrozavwasvbestvknownvforvhisvkicking,vhevalsovplayedvoffensivevtacklevforv
mostvofvhisvcareer.vInvthevmodernvgame,vplayersvarevablevtovspecialize,vtherebyvimprovin
gvtheirvskills.vThisvcanvresultvinvhighervfieldvgoalvpercentagesvforvmorevrecentvplayersvlike
vCodyvParkey.
1.4 Thevtermv“figurevskating”vrefersvtovthevshapesvthatvskatersvusedvtovtracevinvthevicevasvpartvofvskatingvco
mpetitions.vInvthev1970s,vthisvaspectvofvthevsportvwasvdeemphasizedvandveventuallyveliminated.vUsevthe
vtheoryvofvcomparativevadvantagevtovshowvwhyveliminatingvthisvpartvofvthevcompetitionvhasvledvskater
svtovperformvmuchvmorevdifficultvandvsophisticatedvjumpsvandvspins.
Answer:v Theveliminationvofvtracingvfiguresvallowsvskatersvtovspecializevinvothervtechniquesvsuchvasvju
mpsvandvspinsvthatvmostvfansvfindvmorevexciting.vItvalsovencouragesvmorevathleticvskatersv
withvavcomparativevadvantagevinvthesevskillsvtoventervthevsport.
1.5 RosevLavellevisvwidelyvconsideredvonevofvthevbestvmidfieldersvinvwomen’svsoccer.vShevisvalsovanv
effectivevattacker,vscoringvthreevgoalsvinvthev2019vWomen’svWorldvCup.vBasedvonvthevtheoryvofv
comparativevadvantage,vwhatvpositionvshouldvLavellevplay?
Answer:v BasedvonvthevtheoryvofvcomparativevadvantagevLavellevshouldvplayvmidfielder.v Lavellevma
yvhavevanvabsolutevadvantagevinvplayingvmidfieldervandvattackervovervmanyvplayersvbutvshev
clearlyvhasvthevcomparativevadvantagevinvmidfielder.v Therefore,vspecializingvinvmidfieldv
wouldvyieldvavbettervteamvoutcome.
, Instructor’svManualvforvThevEconomicsvofvSports,v7thveditionvRevise
dvandvupdatedvbyvDrvQivGe,vVassarvCollege,vNewvYork,vUSA
1.6 AthletesvinvthevUSvarevmorevlikelyvtovspecializevinvavspecificvsportvtodayvatvavmuchvearliervagevthanvavg
enerationvorvtwovagovwhenvitvwasvmuchvmorevlikelyvforvhighvschoolvorvcollegevstudentsvtovbevmultisp
ortvathletes.vWhatveconomicvfactorsvcouldvexplainvthisvshift?
Answer:vOnevpotentialvexplanationvforvthevphenomenonvisvduevtovcomparativevadvantagesvandvspeci
alization.vThevearliervathletesvcanvspecialize,vthevmorevsport-
specificvtrainingvtheyvwillvreceive,vwhichvwillvlikelyvmakevthemvmorevcompetitivevinvthatvsport,vcomparedvt
ovmultisportvathletesvwhovdovnotvspecializevuntilvmuchvlater.vOnvthevothervhand,vearlyvspecializationvisvalsov
oftenvdrivenvbyvincentivesvduevtovtournamentsvandvsuperstarsvandvcanvpresentvsignificantvnegativevexternali
tiesvtovyoungvathletes.
1.7 InvJulyv2021,vthevNCAAvmodifiedvitsvpolicyvonvathletesvprofitingvfromvtheirvname,vimage,vorvliken
essv(NIL)vallowingvcollegevathletesvforvthevfirstvtimevtovearnvmoneyvfromvendorsements,vappearanc
evfees,vmonetizingvInstagram/Twitter/TikTokvaccounts,vcoaching,vorvsellingvautographs.vUsevthevco
nceptvofvopportunityvcostvtovexplainvwhethervthisvchangevinvpolicyvisvlikelyvtovencouragevathletesvtov
stayvinvcollegevandvcompletevtheirvdegrees.
Answer:v Forvavtopvstudentvathlete,vthevopportunityvcostvofvattendingvcollegevisvthevlostvchancevtovpla
yvinvprofessionalvleagues.vSuchvopportunityvcostvisveffectivelyvloweredvwhenvstudentvathletesvarevallo
wedvtovprofitvfromvNIL.vAsvavresult,vNCAA’svnewvpolicyvwillvlikelyvprovidevstrongervincentivesvforvst
udentvathletesvtovstayvinvcollegevandvcompletevtheirvdegrees.
v v v v v v v v v v v v
Allmen, Victor Matheson v v
Instructor’svManualvforvThevEconomicsvofvSports,v7thveditionvRevise
dvandvupdatedvbyvDrvQivGe,vVassarvCollege,vNewvYork,vUSA
Chapter 1 v
Economics and Sports
v v
◼ Outline
Introduction
1.1 ThevOrganizationvofvthevText
1.2 BabevRuthvandvComparativevAdvantage
Opportunityv Costs
AbsolutevandvComparativevAdvantagevBiographica
lvSketch:vBabevDidriksonvZahariasvSummary,vDiscussio
nvQuestions,vProblems
◼ Teaching Tips and Additional Examples
v v v v
Avuniquevchallengevinvteachingvavcoursevinvtheveconomicsvofvsportsvisvrefiningvstudentvexpectationsvforvthev
class.vIndeed,vsomevprofessorsvandvdepartmentsvhavevbeenvreluctantvtovoffervavcoursevinvthisvfieldvovervwor
riesvthatvitvwillvattractvstudentsvwishingvtovtakevav“blow-
off”vcoursevorvthatvthevtopicvofvsportsvcannotvbevmadevrigorousvenoughvtovbevincludedvinvavcollegevcurricul
um.vTherefore,vitvisvimportantvfromvthevveryvbeginningvofvthevclassvtovemphasizevthatvthevcoursevisvfirstvand
vforemostvanveconomicsvclassvandvthatvsportsvmerelyvsuppliesvthevcontextvinvwhichvtovstudyveconomics.vAsv
notedvbyvavcolleague,v“Expectationsvcanvsometimesvbevseriouslyvoffvtrackvforvthosevstudentsvwhovmayvhav
evchosenvthevcoursevmorevbecausevtheyvsawvthevwordv‘sports’vinvthevtitlevrathervthevwordv‘economics.’v”vAs
vyouvgovovervthevsyllabus,vitvisvimportantvtovemphasizevtheveconomicvtheoriesvthatvyouvlookvforwardvtovcov
eringvasvopposedvtovthevsportsveventsvandvhistory.vAsvthevprerequisitesvforvthisvcoursevvaryvgreatlyvfromvsch
oolvtovschool,vasvdoesvthevintendedvaudience,vitvmayvbevworthwhilevtovcollectvinformationvfromveachvstuden
tvaboutvpastvcourseworkvinveconomicsvandvmathvinvordervtovtailorvthevclassvtovthevabilityvlevelvofvthevstudent
svenrolled.
Itvmayvbevhelpfulvtovstressvthatveconomicsvisvanvincrediblyvflexiblevsubjectvthatvcanvbevappliedvtovjustvaboutv
anyvfacetvofvlife.v Invthisvrespect,vasvthevcoursevprogressesvitvisvoftenvusefulvtovremindvthevstudentsvsomevpar
allelvapplicationvtovthevcurrentvtopic.v Thevkeyvisvtovshowvthatvtheveconomicvprinciplesv(andvthereforevthevri
gor)vdoesvnotvchangevevenvifvthevapplicationvofvthosevprinciplesvdo.v Thisvisvparticularlyvimportantvifvthevcla
ssvisvofferedvasvavlowervlevelvelectivevwithvminimalvprerequisitesvbutvendsvupvattractingvanvaudiencevprimari
lyvmadevupvofvseniorveconomicsvmajors.v Withvavdiversevdistributionvofvstudents,vthevemphasisvonvthevappli
cationvofveconomicsvwillvhelpvteachvthevprinciplesvtovthosevwhovmayvbevseeingvthesevconceptsvforvthevfirstvt
ime,vandvreinforcingvthemvtovthevmorevadvancedvstudents.
Itvmayvalsovbevworthwhilevtovpollvstudentsvaboutvtheirvfavoritevsportsvandvteams,vagainvtovtailorvthevclassvtovt
hevinterestsvofvstudentsvinvclass.vForvexample,vwhenvteachingvcompetitivevbalancevonevcanvdrawvexamplesvf
romvanyvleague,vandvusingvavsportvforvwhichvstudentsvinvclassvhavevexpressedvavpreferencevisvlikelyvtovkeepv
studentsvmorevinterestedvinvthevtopicvevenvasvthevtechnicalvdetailsvofvmeasuringvcompetitivevbalancevarevex
plained.vSimilarly,vavclassvwithvavlargevnumbervofvforeignvstudents,vforvexample,visvlikelyvtovexpress
,Instructor’svManualvforvThevEconomicsvofvSports,v7thveditionvRevise
dvandvupdatedvbyvDrvQivGe,vVassarvCollege,vNewvYork,vUSA
morevinterestvinvsoccervovervthev“bigvfour”vAmericanvleagues.vInvthisvrespectvthevinclusionvofvmorevinternati
onalvsportsvasvtheveditionsvprogressedvshouldvbenefitvthevstudentvbody.
AsvChapterv1vofvthevtextvnotes,vthevtextvexploresvsportsvasvitvappliesvtovthreevmajorvareasvofveconomics:vindu
strialvorganization,vpublicvfinance,vandvlabor.vAsvanvopeningvexercise,vyouvmightvconsidervaskingvthevclassvt
ovgivevexamplesvofvhowveconomicvforcesvimpactvprofessionalvandvmajorvamateurvsportsvwithoutvfirstvprompt
ingvthemvaboutvthevthreevareas.vOncevtheyvhavevaccumulatedvavgoodvlistvonvthevboard,vseevifvtheyvcanvdividev
thosevissuesvintovthevthreevareas.vSomevissues,vsuchvasvthosevrelatedvtovcompetitivevbalance,vwillvbevaddresse
dvinvmorevthanvonevarea—youvcanvnotevthatvasvyouvgovalong.
Chapterv1vspendsvavsignificantlyvtimevonvcomparativevadvantage,vsovbevpreparedvtovdivevrightvinvonvthevfirs
tvdayvofvclass.vAvfunvexercisevthatvutilizesvstudents’vsportsvknowledgevwhilevreinforcingvthevideavofvcompar
ativevadvantagevisvtovidentifyvothervmulti-
sportvathletesvandvexaminevtheirvcareervchoices.vCharlievWard,vthev1993vHeismanvTrophyvwinner,vchosevan
vNBAvcareervovervthevNFL,vBaseballvHall-of-
Famer,vDavevWinfieldvwasvdraftedvbyvthevNBA,vABA,vNFL,vandvMLB,vandvHalevIrwin,vav3-
timevU.S.vOpenvwinnervandvthevall-
timevwinningestvplayervonvthevSeniorvPGAvtour,vwasvavtopvdefensivevbackvforvthevUniversityvofvColorado.v
DeonvSandersvandvBovJacksonvwerevothervmulti-
sportvstars.vByronv“Whizzer”vWhite,vultimatelyvchosevavlawvcareervovervanvNFLvcareervevenvaftervleadingvt
hevleaguevinvrushingvinv1938.vWhiteveventuallyvbecamevavSupremevCourtvJustice.
◼ Additional Sources v
Throughoutvthevcoursevstudentsvwillvneedvtovkeepvabreastvofvcurrentvevents.vFortunately,vthisvrequiresvnoth
ingvmorevthanvaccessvtovthevInternet.vForveachvchaptervthisvmanualvincludesvexamplesvofvqualityvWebvsitesvt
hatvprovidevlotsvofvinformationvregardingvthevsportsvindustry.vForvthevinstructor,vtherevarevseveralvadditiona
lvsourcesvthatvarevworthvconsidering.
Film,vTelevision,vandvRadio:v Ifvyouvlikevtovsupplementvyourvclassesvwithvfilm,vwevrecommendvthevKenvBur
nsvseriesvBaseball.vItvisvdividedvintov18vepisodesv(“topvofvthevfirst”vthroughv“bottomvofvthevninth”).vEachvon
evconsidersvavdifferentvtopicvinvthevdevelopmentvofvprofessionalvbaseballvinvthevUnitedvStates.vBurnsvaddre
ssesveverythingvfromvattemptsvtovformvrivalvleaguesvtovthevhistoryvofvthevreservevclausevtovdiscrimination.v
BillvLittlefield’svOnlyvavGame,visvanvinformativevandvamusingvweeklyvradiovshowvappearingvonvNationalvP
ublicvRadio.vCheckvyourvlocalvlistingsvforvtimes.
TradevPublications:vStreetv&vSmith’svSportsvBusinessvJournal.vThisvweeklyvpublicationvprovidesvinterestin
gvprofilesvofvspecificvsports,vdatavonvattendance,varticles,vandvcommentariesvonvthevbusinessvaspectsvofvspor
ts.vWhilevavnormalvsubscriptionvisvnotvcheap,vavfarvlessvexpensivevsemester-
longvstudentvsubscriptionvisvavailable.vForvmorevinformation,vcheckvtheirvWebvsitevatvhttp://www.sportsbus
inessjournal.com/.
Podcasts:vPodcastsvarevsegments,vorvepisodesvthatvarevorganizedvviavavdigitalvmediavoutlet.v Theyvcanvbevlis
tenedvtovovervthevinternetvorvoftentimesvdownloadedvonvmanyvsmartphones.v Findingvrelevantvandvreliablev
podcastsvcanvbevveryvbeneficial;vtwovsourcesvcanvbevfoundvatvwww.econtalk.orgvandvwww.freakonomics.c
omv.vAvgoodvstartingvpointvmayvbevanvinterviewvbyvsportsveconomistvRogervNollvonvEconTalkvonvAugustv2
7th,v2012.v Slatevmagazine’sv‘HangvupvandvListen’vpodcastvisvanothervusefulvsource.
AcademicvJournals:vThevJournalvofvSportsvEconomicsvremainsvthev“mustvhave”vjournalvforvallvinstructorsvof
vavcoursevinvsportsveconomics.vForvsubscriptionvinformation,vgovtovthevSagevPublicationsvWebvsitevatvhttp://
www.sagepub.com.vOthervhighvquality,vsports-
themedvacademicvjournalsvwithvfrequentveconomicvcontentvincludevInternationalvJournalvofvSportsvFinanc
e,vJournalvofvSportvManagement,vJournalvofvSport
,Instructor’svManualvforvThevEconomicsvofvSports,v7thveditionvRevise
dvandvupdatedvbyvDrvQivGe,vVassarvCollege,vNewvYork,vUSA
andvSocialvIssues,vEuropeanvSportvManagementvQuarterly,vInternationalvJournalvofvSportvManagementvan
dvMarketing,vandvJournalvofvQuantitativevAnalysisvinvSports.
On-
linevSources:vwww.sportsbusinessnews.comvprovidesvgoodvinformationvandvreactionsvtovwhatvisvhappening
vinvsportsvfromvavbusinessvperspective.vYouvcanvevenvelectvtovreceivevtheirv“dailyvdose”vofvsportsvbusinessvne
ws.vwww.thesportseconomist.comvisvavblogvwrittenvbyvavgroupvofvthevtopveconomistsvinvthevfieldvandvconsis
tentlyvprovidesvinterestingveconomicvanalysisvofvcurrentvissuesvinvsports.
◼ Solutions to Back-of-Chapter Problems
v v v
1.1 UsevanvappropriateveconomicvtheoryvtovexplainvwhyvLeBronvJamesvmightvemployvsomeonevtovanswerv
hisvfanvmailvevenvifvhevcanvreadvthevlettersvandvtypevthevresponsesvmorevquicklyvthanvthevpersonvhevem
ploys?
Answer:
IfvLeBronvwerevablevtovanswervhisvfanvmailvmorevquicklyvthanvsomeonevhevhires;vt
hisvwouldvimplyvLeBronvhasvanvabsolutevadvantagevinvansweringvfanvmail.vLeBronvisvstil
lvlikely,vhowever,vtovhavevavcomparativevadvantagevinvplayingvbasketball,vandvthereforevh
evshouldvspecializevinvplayingvbasketballvandvhirevsomeonevelsevtovanswervhisvfanvmail.
1.2 Isvthevfollowingvstatementvtruevorvfalse?vExplainvyourvreasoning.v“Ivamvattendingvcollegevonvavfullv
athleticvscholarship,vsovthevopportunityvcostvofvattendingvcollegevisvzerovforvme.”
Answer:
False.vThevstudentvisvalsovgivingvupvhisvorvhervtime.vAvprimevexamplevofvthisvisvpl
ayersvwhovleavevcollegevearlyvtoventervthevpros.vThevopportunityvcostvofvattendingvcollegev
forvavtopvbasketballvplayervisvthevlostvchancevtovplayvinvthevNBA.
1.3 Fromv1946vthroughv1967,vthevplacekickervforvthevClevelandvBrowns,vLouvGroza,vwasvsuccessfulvo
nv54.9vpercentvofvhisvfieldvgoalvattempts.vInv2021,vthevBrowns’vkickervwasvCodyvParkey,vwhovwasvs
uccessfulvonv84.6vpercentvofvhisvattempts.vUsevthevtheoryvofvcomparativevadvantagevtovexplainvthev
massivevimprovementvinvthevBrowns’vkickingvgame.
Answer:
WhilevGrozavwasvbestvknownvforvhisvkicking,vhevalsovplayedvoffensivevtacklevforv
mostvofvhisvcareer.vInvthevmodernvgame,vplayersvarevablevtovspecialize,vtherebyvimprovin
gvtheirvskills.vThisvcanvresultvinvhighervfieldvgoalvpercentagesvforvmorevrecentvplayersvlike
vCodyvParkey.
1.4 Thevtermv“figurevskating”vrefersvtovthevshapesvthatvskatersvusedvtovtracevinvthevicevasvpartvofvskatingvco
mpetitions.vInvthev1970s,vthisvaspectvofvthevsportvwasvdeemphasizedvandveventuallyveliminated.vUsevthe
vtheoryvofvcomparativevadvantagevtovshowvwhyveliminatingvthisvpartvofvthevcompetitionvhasvledvskater
svtovperformvmuchvmorevdifficultvandvsophisticatedvjumpsvandvspins.
Answer:v Theveliminationvofvtracingvfiguresvallowsvskatersvtovspecializevinvothervtechniquesvsuchvasvju
mpsvandvspinsvthatvmostvfansvfindvmorevexciting.vItvalsovencouragesvmorevathleticvskatersv
withvavcomparativevadvantagevinvthesevskillsvtoventervthevsport.
1.5 RosevLavellevisvwidelyvconsideredvonevofvthevbestvmidfieldersvinvwomen’svsoccer.vShevisvalsovanv
effectivevattacker,vscoringvthreevgoalsvinvthev2019vWomen’svWorldvCup.vBasedvonvthevtheoryvofv
comparativevadvantage,vwhatvpositionvshouldvLavellevplay?
Answer:v BasedvonvthevtheoryvofvcomparativevadvantagevLavellevshouldvplayvmidfielder.v Lavellevma
yvhavevanvabsolutevadvantagevinvplayingvmidfieldervandvattackervovervmanyvplayersvbutvshev
clearlyvhasvthevcomparativevadvantagevinvmidfielder.v Therefore,vspecializingvinvmidfieldv
wouldvyieldvavbettervteamvoutcome.
, Instructor’svManualvforvThevEconomicsvofvSports,v7thveditionvRevise
dvandvupdatedvbyvDrvQivGe,vVassarvCollege,vNewvYork,vUSA
1.6 AthletesvinvthevUSvarevmorevlikelyvtovspecializevinvavspecificvsportvtodayvatvavmuchvearliervagevthanvavg
enerationvorvtwovagovwhenvitvwasvmuchvmorevlikelyvforvhighvschoolvorvcollegevstudentsvtovbevmultisp
ortvathletes.vWhatveconomicvfactorsvcouldvexplainvthisvshift?
Answer:vOnevpotentialvexplanationvforvthevphenomenonvisvduevtovcomparativevadvantagesvandvspeci
alization.vThevearliervathletesvcanvspecialize,vthevmorevsport-
specificvtrainingvtheyvwillvreceive,vwhichvwillvlikelyvmakevthemvmorevcompetitivevinvthatvsport,vcomparedvt
ovmultisportvathletesvwhovdovnotvspecializevuntilvmuchvlater.vOnvthevothervhand,vearlyvspecializationvisvalsov
oftenvdrivenvbyvincentivesvduevtovtournamentsvandvsuperstarsvandvcanvpresentvsignificantvnegativevexternali
tiesvtovyoungvathletes.
1.7 InvJulyv2021,vthevNCAAvmodifiedvitsvpolicyvonvathletesvprofitingvfromvtheirvname,vimage,vorvliken
essv(NIL)vallowingvcollegevathletesvforvthevfirstvtimevtovearnvmoneyvfromvendorsements,vappearanc
evfees,vmonetizingvInstagram/Twitter/TikTokvaccounts,vcoaching,vorvsellingvautographs.vUsevthevco
nceptvofvopportunityvcostvtovexplainvwhethervthisvchangevinvpolicyvisvlikelyvtovencouragevathletesvtov
stayvinvcollegevandvcompletevtheirvdegrees.
Answer:v Forvavtopvstudentvathlete,vthevopportunityvcostvofvattendingvcollegevisvthevlostvchancevtovpla
yvinvprofessionalvleagues.vSuchvopportunityvcostvisveffectivelyvloweredvwhenvstudentvathletesvarevallo
wedvtovprofitvfromvNIL.vAsvavresult,vNCAA’svnewvpolicyvwillvlikelyvprovidevstrongervincentivesvforvst
udentvathletesvtovstayvinvcollegevandvcompletevtheirvdegrees.
