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Opportunistic Behavior in a Cartel Setting

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  • Kathleen Carroll
  • Brad R. Humphreys

Abstract

The National Collegiate Athletic Association (NCAA) governs athletics at colleges and universities in the United States. Economists commonly view the NCAA as a cartel. We empirically reexamine evidence from the 1984 Supreme Court decision on football telecasts and find support for cartel behavior and evidence that this model does not fully explain. Our analysis indicates that the NCAA central organization may have behaved opportunistically by overregulating relative to what would maximize cartel net benefits. We provide a theoretical rationale and show that our empirical estimates are consistent with this behavior that occurs within the cartel framework.

Suggested Citation

  • Kathleen Carroll & Brad R. Humphreys, 2016. "Opportunistic Behavior in a Cartel Setting," Journal of Sports Economics, , vol. 17(6), pages 601-628, August.
    • Handle: RePEc:sae:jospec:v:17:y:2016:i:6:p:601-628
    DOI: 10.1177/1527002514535605
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    References listed on IDEAS

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    1. repec:ucp:bkecon:9780226253268 is not listed on IDEAS
    2. Brad R. Humphreys & Jane E. Ruseski, 2009. "Monitoring Cartel Behavior and Stability: Evidence from NCAA Football," Southern Economic Journal, John Wiley & Sons, vol. 75(3), pages 720-735, January.
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    Cited by:

    1. Allen R. Sanderson & John J. Siegfried, 2018. "The National Collegiate Athletic Association Cartel: Why it Exists, How it Works, and What it Does," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 185-209, March.
    2. E. Woodrow Eckard, 2019. "Does the NCAA’s Collegiate Model Promote Competitive Balance? Power-5 Conference Football Versus the NFL," Journal of Sports Economics, , vol. 20(5), pages 654-670, June.
    3. Allen R. Sanderson & John J. Siegfried, 2018. "The Role of Broadcasting in National Collegiate Athletic Association Sports," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 305-321, March.

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