University of Chicago
Institutional Affiliation: University of Chicago
NBER Working Papers and Publications
|February 2000||Labor Markets in Professional Sports|
with Sherwin Rosen: w7573
Many interesting elements of supply and demand are starkly observable in professional athletics. Understanding institutional arrangements, competitive balance and labor-management relations requires a basic understanding of sports labor markets and the struggle for control of those markets between interest groups. In this paper we treat historical and contemporary labor issues in North America and Europe, from reserve rules and free agency, high levels of player pay and work stoppages, to the distribution of playing talents across teams. We discuss the relationship between personal productivity and pay; relative versus absolute demand; competitive and cooperative interactions across firms (teams); factor substitutions; player mobility and the Coase theorem. We briefly consider how prop...
Published: Rosen, Sherwin and Allen Sanderson. "Labour Markets In Professional Sports," Economic Journal, 2001, v111(469,Feb), 47-68. citation courtesy of