THE NCAA CARTEL AND COMPETITIVE BALANCE IN COLLEGE FOOTBALL

Authors
Citation
Ew. Eckard, THE NCAA CARTEL AND COMPETITIVE BALANCE IN COLLEGE FOOTBALL, Review of industrial organization, 13(3), 1998, pp. 347-369
Citations number
26
Categorie Soggetti
Economics,Management
ISSN journal
0889938X
Volume
13
Issue
3
Year of publication
1998
Pages
347 - 369
Database
ISI
SICI code
0889-938X(1998)13:3<347:TNCACB>2.0.ZU;2-C
Abstract
The NCAA regulates college football player recruiting, eligibility, an d compensation. The economic theory of cartels suggests that one conse quence may be reduced competitive balance. The enforced restrictions i nhibit weak teams from improving, and protect strong teams from compet ition. A ''stratification'' is implied which should be evident over ti me as less ''churning'' in national rankings and conference standings, and fewer schools achieving national prominence. I test this general hypothesis by comparing various competitive balance measures for about 25 years before and after NCAA enforcement began in 1952. The hypothe sis is supported by all measures;It both the national and conference l evels.