Solutions Manual For The Economics of Sports 7e Michael Leeds, Peter von
c c c c c c c c c c c c
Allmen, Victor Matheson c c
Instructor’scManualcforcThecEconomicscofcSports,c7thceditioncRevised
candcupdatedcbycDrcQicGe,cVassarcCollege,cNewcYork,cUSA
Chapter 1 c
Economics and Sports
c c
◼ Outline
Introduction
1.1 ThecOrganizationcofcthecText
1.2 BabecRuthcandcComparativecAdvantage
Opportunityc Costs
AbsolutecandcComparativecAdvantagecBiographica
lcSketch:cBabecDidriksoncZahariascSummary,cDiscussio
ncQuestions,cProblems
◼ Teaching Tips and Additional Examples
c c c c
Acuniquecchallengecincteachingcaccoursecincthececonomicscofcsportsciscrefiningcstudentcexpectationscforctheccl
ass.cIndeed,csomecprofessorscandcdepartmentschavecbeencreluctantctocoffercaccoursecincthiscfieldcovercworrie
scthatcitcwillcattractcstudentscwishingctoctakecac“blow-
off”ccoursecorcthatcthectopiccofcsportsccannotcbecmadecrigorouscenoughctocbecincludedcincaccollegeccurriculu
m.cTherefore,citciscimportantcfromcthecverycbeginningcofcthecclassctocemphasizecthatctheccourseciscfirstcandcfo
remostcanceconomicscclasscandcthatcsportscmerelycsuppliesctheccontextcincwhichctocstudyceconomics.cAscnot
edcbycaccolleague,c“Expectationsccancsometimescbecseriouslycoffctrackcforcthosecstudentscwhocmaychaveccho
senctheccoursecmorecbecausectheycsawcthecwordc‘sports’cincthectitlecrathercthecwordc‘economics.’c”cAscyoucg
ocovercthecsyllabus,citciscimportantctocemphasizecthececonomicctheoriescthatcyouclookcforwardctoccoveringcas
copposedctocthecsportsceventscandchistory.cAscthecprerequisitescforcthisccoursecvarycgreatlycfromcschoolctocsc
hool,cascdoescthecintendedcaudience,citcmaycbecworthwhilectoccollectcinformationcfromceachcstudentcaboutcp
astccourseworkcinceconomicscandcmathcincorderctoctailorcthecclassctocthecabilityclevelcofcthecstudentscenrolled
.
Itcmaycbechelpfulctocstresscthatceconomicsciscancincrediblycflexiblecsubjectcthatccancbecappliedctocjustcaboutcan
ycfacetcofclife.c Incthiscrespect,casctheccoursecprogressescitciscoftencusefulctocremindcthecstudentscsomecparalle
lcapplicationctoctheccurrentctopic.c Theckeycisctocshowcthatcthececonomiccprinciplesc(andcthereforecthecrigor)c
doescnotcchangecevencifcthecapplicationcofcthosecprinciplescdo.c Thisciscparticularlycimportantcifcthecclasscisco
fferedcascaclowerclevelcelectivecwithcminimalcprerequisitescbutcendscupcattractingcancaudiencecprimarilycmad
ecupcofcseniorceconomicscmajors.c Withcacdiversecdistributioncofcstudents,cthecemphasisconcthecapplicationco
fceconomicscwillchelpcteachcthecprinciplesctocthosecwhocmaycbecseeingcthesecconceptscforcthecfirstctime,candc
reinforcingcthemctocthecmorecadvancedcstudents.
Itcmaycalsocbecworthwhilectocpollcstudentscaboutctheircfavoritecsportscandcteams,cagainctoctailorcthecclassctocth
ecinterestscofcstudentscincclass.cForcexample,cwhencteachingccompetitivecbalanceconeccancdrawcexamplescfro
mcanycleague,candcusingcacsportcforcwhichcstudentscincclasschavecexpressedcacpreferencecisclikelyctockeepcstu
dentscmorecinterestedcincthectopiccevencascthectechnicalcdetailscofcmeasuringccompetitivecbalancecarecexplai
ned.cSimilarly,cacclasscwithcaclargecnumbercofcforeigncstudents,cforcexample,cisclikelyctocexpress
,Instructor’scManualcforcThecEconomicscofcSports,c7thceditioncRevised
candcupdatedcbycDrcQicGe,cVassarcCollege,cNewcYork,cUSA
morecinterestcincsoccercovercthec“bigcfour”cAmericancleagues.cIncthiscrespectcthecinclusioncofcmorecinternatio
nalcsportscasctheceditionscprogressedcshouldcbenefitcthecstudentcbody.
AscChapterc1cofcthectextcnotes,cthectextcexplorescsportscascitcappliesctocthreecmajorcareascofceconomics:cindust
rialcorganization,cpubliccfinance,candclabor.cAscancopeningcexercise,cyoucmightcconsidercaskingcthecclassctocg
ivecexamplescofchowceconomiccforcescimpactcprofessionalcandcmajorcamateurcsportscwithoutcfirstcpromptingc
themcaboutcthecthreecareas.cOncectheychavecaccumulatedcacgoodclistconcthecboard,cseecifctheyccancdividecthos
ecissuescintocthecthreecareas.cSomecissues,csuchcascthosecrelatedctoccompetitivecbalance,cwillcbecaddressedcinc
morecthanconecarea—youccancnotecthatcascyoucgocalong.
Chapterc1cspendscacsignificantlyctimeconccomparativecadvantage,csocbecpreparedctocdivecrightcinconcthecfirstc
daycofcclass.cAcfuncexercisecthatcutilizescstudents’csportscknowledgecwhilecreinforcingcthecideacofccomparati
vecadvantagecisctocidentifycothercmulti-
sportcathletescandcexaminectheirccareercchoices.cCharliecWard,cthec1993cHeismancTrophycwinner,cchosecanc
NBAccareercovercthecNFL,cBaseballcHall-of-
Famer,cDavecWinfieldcwascdraftedcbycthecNBA,cABA,cNFL,candcMLB,candcHalecIrwin,cac3-
timecU.S.cOpencwinnercandcthecall-
timecwinningestcplayerconcthecSeniorcPGActour,cwascactopcdefensivecbackcforcthecUniversitycofcColorado.cD
eoncSanderscandcBocJacksoncwerecothercmulti-
sportcstars.cByronc“Whizzer”cWhite,cultimatelycchosecaclawccareercovercancNFLccareercevencaftercleadingcth
ecleaguecincrushingcinc1938.cWhiteceventuallycbecamecacSupremecCourtcJustice.
◼ Additional Sources c
Throughoutctheccoursecstudentscwillcneedctockeepcabreastcofccurrentcevents.cFortunately,cthiscrequirescnothi
ngcmorecthancaccessctocthecInternet.cForceachcchaptercthiscmanualcincludescexamplescofcqualitycWebcsitesctha
tcprovideclotscofcinformationcregardingcthecsportscindustry.cForcthecinstructor,ctherecarecseveralcadditionalcso
urcescthatcarecworthcconsidering.
Film,cTelevision,candcRadio:c Ifcyouclikectocsupplementcyourcclassescwithcfilm,cwecrecommendcthecKencBurn
scseriescBaseball.cItciscdividedcintoc18cepisodesc(“topcofcthecfirst”cthroughc“bottomcofcthecninth”).cEachconec
considerscacdifferentctopiccincthecdevelopmentcofcprofessionalcbaseballcincthecUnitedcStates.cBurnscaddresse
sceverythingcfromcattemptsctocformcrivalcleaguesctocthechistorycofcthecreservecclausectocdiscrimination.cBillc
Littlefield’scOnlycacGame,ciscancinformativecandcamusingcweeklycradiocshowcappearingconcNationalcPublicc
Radio.cCheckcyourclocalclistingscforctimes.
TradecPublications:cStreetc&cSmith’scSportscBusinesscJournal.cThiscweeklycpublicationcprovidescinterestin
gcprofilescofcspecificcsports,cdataconcattendance,carticles,candccommentariesconcthecbusinesscaspectscofcsport
s.cWhilecacnormalcsubscriptionciscnotccheap,cacfarclesscexpensivecsemester-
longcstudentcsubscriptionciscavailable.cForcmorecinformation,ccheckctheircWebcsitecatchttp://www.sportsbusi
nessjournal.com/.
Podcasts:cPodcastscarecsegments,corcepisodescthatcarecorganizedcviacacdigitalcmediacoutlet.c Theyccancbeclist
enedctocovercthecinternetcorcoftentimescdownloadedconcmanycsmartphones.c Findingcrelevantcandcreliablecpo
dcastsccancbecverycbeneficial;ctwocsourcesccancbecfoundcatcwww.econtalk.orgcandcwww.freakonomics.comc
.cAcgoodcstartingcpointcmaycbecancinterviewcbycsportsceconomistcRogercNollconcEconTalkconcAugustc27th,c2
012.c Slatecmagazine’sc‘HangcupcandcListen’cpodcastciscanothercusefulcsource.
AcademiccJournals:cThecJournalcofcSportscEconomicscremainscthec“mustchave”cjournalcforcallcinstructorscofc
accoursecincsportsceconomics.cForcsubscriptioncinformation,cgoctocthecSagecPublicationscWebcsitecatchttp://w
ww.sagepub.com.cOtherchighcquality,csports-
themedcacademiccjournalscwithcfrequentceconomicccontentcincludecInternationalcJournalcofcSportscFinance
,cJournalcofcSportcManagement,cJournalcofcSport
,Instructor’scManualcforcThecEconomicscofcSports,c7thceditioncRevised
candcupdatedcbycDrcQicGe,cVassarcCollege,cNewcYork,cUSA
andcSocialcIssues,cEuropeancSportcManagementcQuarterly,cInternationalcJournalcofcSportcManagementcan
dcMarketing,candcJournalcofcQuantitativecAnalysiscincSports.
On-
linecSources:cwww.sportsbusinessnews.comcprovidescgoodcinformationcandcreactionsctocwhatcischappeningc
incsportscfromcacbusinesscperspective.cYouccancevencelectctocreceivectheirc“dailycdose”cofcsportscbusinesscnew
s.cwww.thesportseconomist.comciscacblogcwrittencbycacgroupcofcthectopceconomistscincthecfieldcandcconsiste
ntlycprovidescinterestingceconomiccanalysiscofccurrentcissuescincsports.
◼ Solutions to Back-of-Chapter Problems
c c c
1.1 UsecancappropriatececonomicctheoryctocexplaincwhycLeBroncJamescmightcemploycsomeonectocanswerch
iscfancmailcevencifcheccancreadcthecletterscandctypecthecresponsescmorecquicklycthancthecpersonchecempl
oys?
Answer:
IfcLeBroncwerecablectocanswerchiscfancmailcmorecquicklycthancsomeonechechires;ct
hiscwouldcimplycLeBronchascancabsolutecadvantagecincansweringcfancmail.cLeBronciscstillc
likely,chowever,ctochavecaccomparativecadvantagecincplayingcbasketball,candcthereforechecs
houldcspecializecincplayingcbasketballcandchirecsomeonecelsectocanswerchiscfancmail.
1.2 Iscthecfollowingcstatementctruecorcfalse?cExplaincyourcreasoning.c“Icamcattendingccollegeconcacfullcat
hleticcscholarship,csocthecopportunityccostcofcattendingccollegecisczerocforcme.”
Answer:
False.cThecstudentciscalsocgivingcupchiscorcherctime.cAcprimecexamplecofcthisciscpla
yerscwhocleaveccollegecearlyctocentercthecpros.cThecopportunityccostcofcattendingccollegecfo
rcactopcbasketballcplayercisctheclostcchancectocplaycincthecNBA.
1.3 Fromc1946cthroughc1967,cthecplacekickercforcthecClevelandcBrowns,cLoucGroza,cwascsuccessfulconc
54.9cpercentcofchiscfieldcgoalcattempts.cInc2021,cthecBrowns’ckickercwascCodycParkey,cwhocwascsucc
essfulconc84.6cpercentcofchiscattempts.cUsecthectheorycofccomparativecadvantagectocexplaincthecmassi
vecimprovementcincthecBrowns’ckickingcgame.
Answer:
WhilecGrozacwascbestcknowncforchisckicking,checalsocplayedcoffensivectacklecforcm
ostcofchisccareer.cIncthecmoderncgame,cplayerscarecablectocspecialize,ctherebycimprovingcth
eircskills.cThisccancresultcinchighercfieldcgoalcpercentagescforcmorecrecentcplayersclikecCod
ycParkey.
1.4 Thectermc“figurecskating”crefersctocthecshapescthatcskaterscusedctoctracecincthecicecascpartcofcskatingcco
mpetitions.cIncthec1970s,cthiscaspectcofcthecsportcwascdeemphasizedcandceventuallyceliminated.cUsecthec
theorycofccomparativecadvantagectocshowcwhyceliminatingcthiscpartcofctheccompetitionchascledcskatersct
ocperformcmuchcmorecdifficultcandcsophisticatedcjumpscandcspins.
Answer:c Theceliminationcofctracingcfigurescallowscskatersctocspecializecincotherctechniquescsuchcascju
mpscandcspinscthatcmostcfanscfindcmorecexciting.cItcalsocencouragescmorecathleticcskaterscw
ithcaccomparativecadvantagecincthesecskillsctocentercthecsport.
1.5 RosecLavelleciscwidelycconsideredconecofcthecbestcmidfielderscincwomen’scsoccer.cSheciscalsocancef
fectivecattacker,cscoringcthreecgoalscincthec2019cWomen’scWorldcCup.cBasedconcthectheorycofcco
mparativecadvantage,cwhatcpositioncshouldcLavellecplay?
Answer:c BasedconcthectheorycofccomparativecadvantagecLavellecshouldcplaycmidfielder.c Lavellecma
ychavecancabsolutecadvantagecincplayingcmidfieldercandcattackercovercmanycplayerscbutcshecc
learlychasctheccomparativecadvantagecincmidfielder.c Therefore,cspecializingcincmidfieldcwo
uldcyieldcacbettercteamcoutcome.
, Instructor’scManualcforcThecEconomicscofcSports,c7thceditioncRevised
candcupdatedcbycDrcQicGe,cVassarcCollege,cNewcYork,cUSA
1.6 AthletescincthecUScarecmoreclikelyctocspecializecincacspecificcsportctodaycatcacmuchcearliercagecthancacge
nerationcorctwocagocwhencitcwascmuchcmoreclikelycforchighcschoolcorccollegecstudentsctocbecmultispor
tcathletes.cWhatceconomiccfactorsccouldcexplaincthiscshift?
Answer:cOnecpotentialcexplanationcforcthecphenomenonciscduectoccomparativecadvantagescandcspecia
lization.cThecearliercathletesccancspecialize,cthecmorecsport-
specificctrainingctheycwillcreceive,cwhichcwillclikelycmakecthemcmoreccompetitivecincthatcsport,ccomparedcto
cmultisportcathletescwhocdocnotcspecializecuntilcmuchclater.cOncthecotherchand,cearlycspecializationciscalsocof
tencdrivencbycincentivescduectoctournamentscandcsuperstarscandccancpresentcsignificantcnegativecexternalitie
sctocyoungcathletes.
1.7 IncJulyc2021,cthecNCAAcmodifiedcitscpolicyconcathletescprofitingcfromctheircname,cimage,corclikene
ssc(NIL)callowingccollegecathletescforcthecfirstctimectocearncmoneycfromcendorsements,cappearancecf
ees,cmonetizingcInstagram/Twitter/TikTokcaccounts,ccoaching,corcsellingcautographs.cUsecthecconc
eptcofcopportunityccostctocexplaincwhethercthiscchangecincpolicycisclikelyctocencouragecathletesctocsta
ycinccollegecandccompletectheircdegrees.
Answer:c Forcactopcstudentcathlete,cthecopportunityccostcofcattendingccollegecisctheclostcchancectocplayc
incprofessionalcleagues.cSuchcopportunityccostcisceffectivelycloweredcwhencstudentcathletescarecallowe
dctocprofitcfromcNIL.cAscacresult,cNCAA’scnewcpolicycwillclikelycprovidecstrongercincentivescforcstude
ntcathletesctocstaycinccollegecandccompletectheircdegrees.
c c c c c c c c c c c c
Allmen, Victor Matheson c c
Instructor’scManualcforcThecEconomicscofcSports,c7thceditioncRevised
candcupdatedcbycDrcQicGe,cVassarcCollege,cNewcYork,cUSA
Chapter 1 c
Economics and Sports
c c
◼ Outline
Introduction
1.1 ThecOrganizationcofcthecText
1.2 BabecRuthcandcComparativecAdvantage
Opportunityc Costs
AbsolutecandcComparativecAdvantagecBiographica
lcSketch:cBabecDidriksoncZahariascSummary,cDiscussio
ncQuestions,cProblems
◼ Teaching Tips and Additional Examples
c c c c
Acuniquecchallengecincteachingcaccoursecincthececonomicscofcsportsciscrefiningcstudentcexpectationscforctheccl
ass.cIndeed,csomecprofessorscandcdepartmentschavecbeencreluctantctocoffercaccoursecincthiscfieldcovercworrie
scthatcitcwillcattractcstudentscwishingctoctakecac“blow-
off”ccoursecorcthatcthectopiccofcsportsccannotcbecmadecrigorouscenoughctocbecincludedcincaccollegeccurriculu
m.cTherefore,citciscimportantcfromcthecverycbeginningcofcthecclassctocemphasizecthatctheccourseciscfirstcandcfo
remostcanceconomicscclasscandcthatcsportscmerelycsuppliesctheccontextcincwhichctocstudyceconomics.cAscnot
edcbycaccolleague,c“Expectationsccancsometimescbecseriouslycoffctrackcforcthosecstudentscwhocmaychaveccho
senctheccoursecmorecbecausectheycsawcthecwordc‘sports’cincthectitlecrathercthecwordc‘economics.’c”cAscyoucg
ocovercthecsyllabus,citciscimportantctocemphasizecthececonomicctheoriescthatcyouclookcforwardctoccoveringcas
copposedctocthecsportsceventscandchistory.cAscthecprerequisitescforcthisccoursecvarycgreatlycfromcschoolctocsc
hool,cascdoescthecintendedcaudience,citcmaycbecworthwhilectoccollectcinformationcfromceachcstudentcaboutcp
astccourseworkcinceconomicscandcmathcincorderctoctailorcthecclassctocthecabilityclevelcofcthecstudentscenrolled
.
Itcmaycbechelpfulctocstresscthatceconomicsciscancincrediblycflexiblecsubjectcthatccancbecappliedctocjustcaboutcan
ycfacetcofclife.c Incthiscrespect,casctheccoursecprogressescitciscoftencusefulctocremindcthecstudentscsomecparalle
lcapplicationctoctheccurrentctopic.c Theckeycisctocshowcthatcthececonomiccprinciplesc(andcthereforecthecrigor)c
doescnotcchangecevencifcthecapplicationcofcthosecprinciplescdo.c Thisciscparticularlycimportantcifcthecclasscisco
fferedcascaclowerclevelcelectivecwithcminimalcprerequisitescbutcendscupcattractingcancaudiencecprimarilycmad
ecupcofcseniorceconomicscmajors.c Withcacdiversecdistributioncofcstudents,cthecemphasisconcthecapplicationco
fceconomicscwillchelpcteachcthecprinciplesctocthosecwhocmaycbecseeingcthesecconceptscforcthecfirstctime,candc
reinforcingcthemctocthecmorecadvancedcstudents.
Itcmaycalsocbecworthwhilectocpollcstudentscaboutctheircfavoritecsportscandcteams,cagainctoctailorcthecclassctocth
ecinterestscofcstudentscincclass.cForcexample,cwhencteachingccompetitivecbalanceconeccancdrawcexamplescfro
mcanycleague,candcusingcacsportcforcwhichcstudentscincclasschavecexpressedcacpreferencecisclikelyctockeepcstu
dentscmorecinterestedcincthectopiccevencascthectechnicalcdetailscofcmeasuringccompetitivecbalancecarecexplai
ned.cSimilarly,cacclasscwithcaclargecnumbercofcforeigncstudents,cforcexample,cisclikelyctocexpress
,Instructor’scManualcforcThecEconomicscofcSports,c7thceditioncRevised
candcupdatedcbycDrcQicGe,cVassarcCollege,cNewcYork,cUSA
morecinterestcincsoccercovercthec“bigcfour”cAmericancleagues.cIncthiscrespectcthecinclusioncofcmorecinternatio
nalcsportscasctheceditionscprogressedcshouldcbenefitcthecstudentcbody.
AscChapterc1cofcthectextcnotes,cthectextcexplorescsportscascitcappliesctocthreecmajorcareascofceconomics:cindust
rialcorganization,cpubliccfinance,candclabor.cAscancopeningcexercise,cyoucmightcconsidercaskingcthecclassctocg
ivecexamplescofchowceconomiccforcescimpactcprofessionalcandcmajorcamateurcsportscwithoutcfirstcpromptingc
themcaboutcthecthreecareas.cOncectheychavecaccumulatedcacgoodclistconcthecboard,cseecifctheyccancdividecthos
ecissuescintocthecthreecareas.cSomecissues,csuchcascthosecrelatedctoccompetitivecbalance,cwillcbecaddressedcinc
morecthanconecarea—youccancnotecthatcascyoucgocalong.
Chapterc1cspendscacsignificantlyctimeconccomparativecadvantage,csocbecpreparedctocdivecrightcinconcthecfirstc
daycofcclass.cAcfuncexercisecthatcutilizescstudents’csportscknowledgecwhilecreinforcingcthecideacofccomparati
vecadvantagecisctocidentifycothercmulti-
sportcathletescandcexaminectheirccareercchoices.cCharliecWard,cthec1993cHeismancTrophycwinner,cchosecanc
NBAccareercovercthecNFL,cBaseballcHall-of-
Famer,cDavecWinfieldcwascdraftedcbycthecNBA,cABA,cNFL,candcMLB,candcHalecIrwin,cac3-
timecU.S.cOpencwinnercandcthecall-
timecwinningestcplayerconcthecSeniorcPGActour,cwascactopcdefensivecbackcforcthecUniversitycofcColorado.cD
eoncSanderscandcBocJacksoncwerecothercmulti-
sportcstars.cByronc“Whizzer”cWhite,cultimatelycchosecaclawccareercovercancNFLccareercevencaftercleadingcth
ecleaguecincrushingcinc1938.cWhiteceventuallycbecamecacSupremecCourtcJustice.
◼ Additional Sources c
Throughoutctheccoursecstudentscwillcneedctockeepcabreastcofccurrentcevents.cFortunately,cthiscrequirescnothi
ngcmorecthancaccessctocthecInternet.cForceachcchaptercthiscmanualcincludescexamplescofcqualitycWebcsitesctha
tcprovideclotscofcinformationcregardingcthecsportscindustry.cForcthecinstructor,ctherecarecseveralcadditionalcso
urcescthatcarecworthcconsidering.
Film,cTelevision,candcRadio:c Ifcyouclikectocsupplementcyourcclassescwithcfilm,cwecrecommendcthecKencBurn
scseriescBaseball.cItciscdividedcintoc18cepisodesc(“topcofcthecfirst”cthroughc“bottomcofcthecninth”).cEachconec
considerscacdifferentctopiccincthecdevelopmentcofcprofessionalcbaseballcincthecUnitedcStates.cBurnscaddresse
sceverythingcfromcattemptsctocformcrivalcleaguesctocthechistorycofcthecreservecclausectocdiscrimination.cBillc
Littlefield’scOnlycacGame,ciscancinformativecandcamusingcweeklycradiocshowcappearingconcNationalcPublicc
Radio.cCheckcyourclocalclistingscforctimes.
TradecPublications:cStreetc&cSmith’scSportscBusinesscJournal.cThiscweeklycpublicationcprovidescinterestin
gcprofilescofcspecificcsports,cdataconcattendance,carticles,candccommentariesconcthecbusinesscaspectscofcsport
s.cWhilecacnormalcsubscriptionciscnotccheap,cacfarclesscexpensivecsemester-
longcstudentcsubscriptionciscavailable.cForcmorecinformation,ccheckctheircWebcsitecatchttp://www.sportsbusi
nessjournal.com/.
Podcasts:cPodcastscarecsegments,corcepisodescthatcarecorganizedcviacacdigitalcmediacoutlet.c Theyccancbeclist
enedctocovercthecinternetcorcoftentimescdownloadedconcmanycsmartphones.c Findingcrelevantcandcreliablecpo
dcastsccancbecverycbeneficial;ctwocsourcesccancbecfoundcatcwww.econtalk.orgcandcwww.freakonomics.comc
.cAcgoodcstartingcpointcmaycbecancinterviewcbycsportsceconomistcRogercNollconcEconTalkconcAugustc27th,c2
012.c Slatecmagazine’sc‘HangcupcandcListen’cpodcastciscanothercusefulcsource.
AcademiccJournals:cThecJournalcofcSportscEconomicscremainscthec“mustchave”cjournalcforcallcinstructorscofc
accoursecincsportsceconomics.cForcsubscriptioncinformation,cgoctocthecSagecPublicationscWebcsitecatchttp://w
ww.sagepub.com.cOtherchighcquality,csports-
themedcacademiccjournalscwithcfrequentceconomicccontentcincludecInternationalcJournalcofcSportscFinance
,cJournalcofcSportcManagement,cJournalcofcSport
,Instructor’scManualcforcThecEconomicscofcSports,c7thceditioncRevised
candcupdatedcbycDrcQicGe,cVassarcCollege,cNewcYork,cUSA
andcSocialcIssues,cEuropeancSportcManagementcQuarterly,cInternationalcJournalcofcSportcManagementcan
dcMarketing,candcJournalcofcQuantitativecAnalysiscincSports.
On-
linecSources:cwww.sportsbusinessnews.comcprovidescgoodcinformationcandcreactionsctocwhatcischappeningc
incsportscfromcacbusinesscperspective.cYouccancevencelectctocreceivectheirc“dailycdose”cofcsportscbusinesscnew
s.cwww.thesportseconomist.comciscacblogcwrittencbycacgroupcofcthectopceconomistscincthecfieldcandcconsiste
ntlycprovidescinterestingceconomiccanalysiscofccurrentcissuescincsports.
◼ Solutions to Back-of-Chapter Problems
c c c
1.1 UsecancappropriatececonomicctheoryctocexplaincwhycLeBroncJamescmightcemploycsomeonectocanswerch
iscfancmailcevencifcheccancreadcthecletterscandctypecthecresponsescmorecquicklycthancthecpersonchecempl
oys?
Answer:
IfcLeBroncwerecablectocanswerchiscfancmailcmorecquicklycthancsomeonechechires;ct
hiscwouldcimplycLeBronchascancabsolutecadvantagecincansweringcfancmail.cLeBronciscstillc
likely,chowever,ctochavecaccomparativecadvantagecincplayingcbasketball,candcthereforechecs
houldcspecializecincplayingcbasketballcandchirecsomeonecelsectocanswerchiscfancmail.
1.2 Iscthecfollowingcstatementctruecorcfalse?cExplaincyourcreasoning.c“Icamcattendingccollegeconcacfullcat
hleticcscholarship,csocthecopportunityccostcofcattendingccollegecisczerocforcme.”
Answer:
False.cThecstudentciscalsocgivingcupchiscorcherctime.cAcprimecexamplecofcthisciscpla
yerscwhocleaveccollegecearlyctocentercthecpros.cThecopportunityccostcofcattendingccollegecfo
rcactopcbasketballcplayercisctheclostcchancectocplaycincthecNBA.
1.3 Fromc1946cthroughc1967,cthecplacekickercforcthecClevelandcBrowns,cLoucGroza,cwascsuccessfulconc
54.9cpercentcofchiscfieldcgoalcattempts.cInc2021,cthecBrowns’ckickercwascCodycParkey,cwhocwascsucc
essfulconc84.6cpercentcofchiscattempts.cUsecthectheorycofccomparativecadvantagectocexplaincthecmassi
vecimprovementcincthecBrowns’ckickingcgame.
Answer:
WhilecGrozacwascbestcknowncforchisckicking,checalsocplayedcoffensivectacklecforcm
ostcofchisccareer.cIncthecmoderncgame,cplayerscarecablectocspecialize,ctherebycimprovingcth
eircskills.cThisccancresultcinchighercfieldcgoalcpercentagescforcmorecrecentcplayersclikecCod
ycParkey.
1.4 Thectermc“figurecskating”crefersctocthecshapescthatcskaterscusedctoctracecincthecicecascpartcofcskatingcco
mpetitions.cIncthec1970s,cthiscaspectcofcthecsportcwascdeemphasizedcandceventuallyceliminated.cUsecthec
theorycofccomparativecadvantagectocshowcwhyceliminatingcthiscpartcofctheccompetitionchascledcskatersct
ocperformcmuchcmorecdifficultcandcsophisticatedcjumpscandcspins.
Answer:c Theceliminationcofctracingcfigurescallowscskatersctocspecializecincotherctechniquescsuchcascju
mpscandcspinscthatcmostcfanscfindcmorecexciting.cItcalsocencouragescmorecathleticcskaterscw
ithcaccomparativecadvantagecincthesecskillsctocentercthecsport.
1.5 RosecLavelleciscwidelycconsideredconecofcthecbestcmidfielderscincwomen’scsoccer.cSheciscalsocancef
fectivecattacker,cscoringcthreecgoalscincthec2019cWomen’scWorldcCup.cBasedconcthectheorycofcco
mparativecadvantage,cwhatcpositioncshouldcLavellecplay?
Answer:c BasedconcthectheorycofccomparativecadvantagecLavellecshouldcplaycmidfielder.c Lavellecma
ychavecancabsolutecadvantagecincplayingcmidfieldercandcattackercovercmanycplayerscbutcshecc
learlychasctheccomparativecadvantagecincmidfielder.c Therefore,cspecializingcincmidfieldcwo
uldcyieldcacbettercteamcoutcome.
, Instructor’scManualcforcThecEconomicscofcSports,c7thceditioncRevised
candcupdatedcbycDrcQicGe,cVassarcCollege,cNewcYork,cUSA
1.6 AthletescincthecUScarecmoreclikelyctocspecializecincacspecificcsportctodaycatcacmuchcearliercagecthancacge
nerationcorctwocagocwhencitcwascmuchcmoreclikelycforchighcschoolcorccollegecstudentsctocbecmultispor
tcathletes.cWhatceconomiccfactorsccouldcexplaincthiscshift?
Answer:cOnecpotentialcexplanationcforcthecphenomenonciscduectoccomparativecadvantagescandcspecia
lization.cThecearliercathletesccancspecialize,cthecmorecsport-
specificctrainingctheycwillcreceive,cwhichcwillclikelycmakecthemcmoreccompetitivecincthatcsport,ccomparedcto
cmultisportcathletescwhocdocnotcspecializecuntilcmuchclater.cOncthecotherchand,cearlycspecializationciscalsocof
tencdrivencbycincentivescduectoctournamentscandcsuperstarscandccancpresentcsignificantcnegativecexternalitie
sctocyoungcathletes.
1.7 IncJulyc2021,cthecNCAAcmodifiedcitscpolicyconcathletescprofitingcfromctheircname,cimage,corclikene
ssc(NIL)callowingccollegecathletescforcthecfirstctimectocearncmoneycfromcendorsements,cappearancecf
ees,cmonetizingcInstagram/Twitter/TikTokcaccounts,ccoaching,corcsellingcautographs.cUsecthecconc
eptcofcopportunityccostctocexplaincwhethercthiscchangecincpolicycisclikelyctocencouragecathletesctocsta
ycinccollegecandccompletectheircdegrees.
Answer:c Forcactopcstudentcathlete,cthecopportunityccostcofcattendingccollegecisctheclostcchancectocplayc
incprofessionalcleagues.cSuchcopportunityccostcisceffectivelycloweredcwhencstudentcathletescarecallowe
dctocprofitcfromcNIL.cAscacresult,cNCAA’scnewcpolicycwillclikelycprovidecstrongercincentivescforcstude
ntcathletesctocstaycinccollegecandccompletectheircdegrees.
