Friday, January 22, 2010
Classroom Example Using Recent Vikings News
I read the following posted by John Whitehead over at the Environmental Economics blog. Some TSE readers may find it to be a useful discussion tool for the classroom.
TOPICS: Sports EconomicsHere is a link to the article.
SUMMARY: Some Minnesota Vikings fans believe fandom is priceless. According to economists, it's worth $530.65.
CLASSROOM APPLICATION: The article summarizes "Estimating Local Welfare Generated by an NFL Team under Credible Threat of Relocation" by Aju Fenn (Colorado College) and John Crooker (University of Central Missouri, Southern Economic Journal, July 2009. The article is background reading for a lively classroom discussion about the value of NFL franchises to cities and their inhabitants, and how economists measure these values. Considering measurement, the article touches on the paper's methodology, namely contingent valuation, and criticisms of this methodology.
QUESTIONS:
1. (Introductory) What are the sources of value of an NFL franchise to a city?
2. (Advanced) What methodology do economists use to measure the value to a city of an NFL franchise?
3. (Advanced) Should cities and states finance the construction of NFL stadiums? In particular, should Minnesota finance the constructions of a new Vikings stadium?
Reviewed By: James Dearden, Lehigh University
Labels: sports economics pedagogy
Wednesday, November 26, 2008
Sports Economics Test Question
Suppose that next season, Derrek will be worth $5,000,000 to the Mets and will be worth $3,000,000 to the Cubs. Suppose that negotiations between any of the parties is costless and that both teams maximize profits. Suppose that Derrek just finished playing under contract for the Cubs. Discuss the difference between negotiations under the following labor market structures: free agency and the reserve clause. Based on Rottenberg's Invariance Hypothesis, which of the two labor market structures results in the efficient outcome? Based on this hypothesis, which of the two structures would result in Derrek playing for the Mets? Describe the distribution of income under the two labor market structures.
Labels: Invariance Hypothesis, Simon Rottenberg, sports economics pedagogy
