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An empirical note on the impact of college athletics on tuition revenues

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  • Franklin Mixon
  • Rand Ressler

Abstract

The economics and sociology literature has given much attention to the proper role of athletics in the mission of institutions of higher education. This discussion has turned into a debate; one argument holds that athletics fit nicely into the mission of most colleges. However, it has also been argued that athletics impede the students and faculty from achieving their academic potential. We argue that college athletics can increase the demand to attend the institution and lower the price elasticity of demand of non-resident students. This, in turn, increases the level of financial resources available to the institution. We model the percentage of out-of-state students as being dependent upon athletic success (among other variables) and find a positive and significant relationship between the two. In addition, potential net revenue gains from athletic success are provided for specific institutions.

Suggested Citation

  • Franklin Mixon & Rand Ressler, 1995. "An empirical note on the impact of college athletics on tuition revenues," Applied Economics Letters, Taylor & Francis Journals, vol. 2(10), pages 383-387.
    • Handle: RePEc:taf:apeclt:v:2:y:1995:i:10:p:383-387
    DOI: 10.1080/758518995
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    References listed on IDEAS

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    1. Bremmer, Dale S. & Kesselring, Randall G., 1993. "The advertising effect of university athletic success: A reappraisal of the evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 33(4), pages 409-421.
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    4. Kroncke, Charles Jr & Ressler, Rand W., 1993. "The Alchian-Allen effect in higher education: Public versus private enrollment," Economics of Education Review, Elsevier, vol. 12(4), pages 345-349, December.
    5. Charles T. Clotfelter & Ronald G. Ehrenberg & Malcolm Getz & John J. Siegfried, 1991. "Introduction to "Economic Challenges in Higher Education"," NBER Chapters, in: Economic Challenges in Higher Education, pages 1-16, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Benjamin Baumer & Andrew Zimbalist, 2019. "The Impact of College Athletic Success on Donations and Applicant Quality," IJFS, MDPI, vol. 7(2), pages 1-23, April.
    2. D. Randall Smith, 2008. "Big-Time College Basketball and the Advertising Effect," Journal of Sports Economics, , vol. 9(4), pages 387-406, August.
    3. Richard Adkisson & James Peach, 2008. "Non-resident enrollment and non-resident tuition at land grant colleges and universities," Education Economics, Taylor & Francis Journals, vol. 16(1), pages 75-88.
    4. Trevor Collier & Nancy Haskell & Kurt W. Rotthoff & Alaina Baker, 2020. "The “Cinderella Effect†: The Value of Unexpected March Madness Runs as Advertising for the Schools," Journal of Sports Economics, , vol. 21(8), pages 783-807, December.
    5. Devin G. Pope & Jaren C. Pope, 2009. "The Impact of College Sports Success on the Quantity and Quality of Student Applications," Southern Economic Journal, John Wiley & Sons, vol. 75(3), pages 750-780, January.
    6. Candon Johnson & Bryan C. McCannon, 2022. "Athletics and Admissions: The Impact of the Penn State Football Scandal on Student Quality," Journal of Sports Economics, , vol. 23(2), pages 200-221, February.
    7. Bernard F. Lentz & David N. Laband, 2008. "The Impact of College Athletics on Employment in the Restaurant and Accommodations Industries," Working Papers 0803, International Association of Sports Economists;North American Association of Sports Economists.
    8. D. Randall Smith, 2019. "The Lure of Academic and Social Reputations Versus Athletic Success: Influences on Enrollment Yield at NCAA Division I Institutions," Research in Higher Education, Springer;Association for Institutional Research, vol. 60(6), pages 870-904, September.
    9. Douglas Dotterweich & Edward Baryla, 2005. "Non-resident Tuition and Enrollment in Higher Education: Implications for Tuition Pricing," Education Economics, Taylor & Francis Journals, vol. 13(4), pages 375-385.

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