Aims: This unit applies economic theory - demand and supply, theory of the firm and labour markets - to the analysis of the sport industry. The material covered in the unit will deal with both theoretical and empirical issues in equal measure and will be applied to both US and European team and individual sports (although the primary focus is on team sports).
Learning Outcomes:
* To develop an appreciation of how microeconomics may be used to explain the motivation of economic agents in the sports industry
* To understand the operation of sporting leagues and critically evaluate policy proposals with respect to the product market and the labour market
* To develop a knowledge and understanding of the relevant theoretical and empirical literature relating to the economics of sport.
Skills:
Problem-solving exercises, critical and analytical skills, self-directed learning.
Content:
Economic and commercial importance of the industry, current issues; nature of the product and objectives, demand for team sports and the uncertainty of outcome hypothesis; the impact of broadcasting on demand and revenue; estimation of team production functions, establishing the contribution of the manager/coach; economic models of sporting leagues and league behaviour in response to gate-sharing, salary caps and luxury taxes; measuring competitive balance; salary determination; eliciting effort and the behaviour of individuals in response to monitoring and / or rule changes; measuring the impact of major sporting events.
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