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Alternative Approaches to Measuring MRP

Author

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  • Erin Lane
  • Juan Nagel
  • Janet S. Netz

Abstract

College men’s basketball players have alleged that the National Collegiate Athletic Association’s (NCAA) cap on athletic scholarships is illegal and leads to lower scholarships than would prevail in a free market. Recently, the NCAA increased the limit on athletic scholarships. The authors compare the marginal revenue product (MRP) of men’s basketball players to athletic scholarship caps. The authors estimate MRPs using players’ playing statistics; information on the distribution of pro salaries; and players’ future draft status. The authors find that players’ MRPs are greater than the athletic scholarship caps for about 60% of men’s basketball players, not just the star players.

Suggested Citation

  • Erin Lane & Juan Nagel & Janet S. Netz, 2014. "Alternative Approaches to Measuring MRP," Journal of Sports Economics, , vol. 15(3), pages 237-262, June.
    • Handle: RePEc:sae:jospec:v:15:y:2014:i:3:p:237-262
    DOI: 10.1177/1527002512453144
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    References listed on IDEAS

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    Cited by:

    1. Matthew Philip Makofske, 2018. "Are you hiring Johnny Football or Johnny Doe? Uncertain labour quality and the measurement of monopsony in college football," Applied Economics, Taylor & Francis Journals, vol. 50(22), pages 2415-2430, May.
    2. Allen R. Sanderson & John J. Siegfried, 2015. "The Case for Paying College Athletes," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 115-138, Winter.
    3. Craig Garthwaite & Jordan Keener & Matthew Notowidigdo & Nicole Ozminkowski, 2020. "Who Profits from Amateurism? Rent-Sharing in Modern College Sports," Working Papers 2020-117, Becker Friedman Institute for Research In Economics.
    4. Michael A. Leeds & Eva Marikova Leeds & Aaron Harris, 2018. "Rent Sharing and the Compensation of Head Coaches in Power Five College Football," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 253-267, March.
    5. Peter K. Hunsberger & Seth R. Gitter, 2015. "What is a Blue Chip Recruit Worth? Estimating the Marginal Revenue Product of College Football Quarterbacks," Journal of Sports Economics, , vol. 16(6), pages 664-690, August.
    6. Brent A. Evans & Joshua D. Pitts, 2018. "Cross-Sport Recruiting Effects in NCAA D1 Football and Basketball," Journal of Sports Economics, , vol. 19(6), pages 820-842, August.
    7. Michael A. Leeds & Ngoc Tram Nguyen Pham, 2020. "Productivity, Rents, and the Salaries of Group of Five Football Coaches," Journal of Sports Economics, , vol. 21(1), pages 3-19, January.

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    Keywords

    marginal revenue product; basketball;

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