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Is Self-Sufficiency for Womens Collegiate Athletics a Hoop Dream?: Willingness to Pay for Mens and Womens Basketball Tickets

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Abstract

Universities spend almost $2 billion subsidizing their collegiate sports programs. Even the most popular women's sport, basketball, fails to break even. An application of Becker's theory of customer discrimination is used to calculate the relative preference for men's basketball for both men and women. Median willingness to pay for men's basketball relative to women's basketball is 180% greater for men and 37% greater for women. Pricing each sport at its revenue maximizing price, revenues from women's basketball are only 43% of that for men, even at a school with historically strong demand for women's sports.

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  • Rosas, Juan (Francisco) & Orazem, Peter, 2011. "Is Self-Sufficiency for Womens Collegiate Athletics a Hoop Dream?: Willingness to Pay for Mens and Womens Basketball Tickets," Staff General Research Papers Archive 33822, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:33822
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    File URL: http://www2.econ.iastate.edu/papers/p13822-2011-05-26.pdf
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    1. John DiNardo & Justin L. Tobias, 2001. "Nonparametric Density and Regression Estimation," Journal of Economic Perspectives, American Economic Association, vol. 15(4), pages 11-28, Fall.
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    More about this item

    Keywords

    Basketball; Becker; reservation price; revenue; customer discrimination; cross marketing; NCAA;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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