ECON 3520 - Sports Economics III
North Terrace Campus - Winter - 2017
General Course Information
Course Code ECON 3520 Course Sports Economics III Coordinating Unit School of Economics Term Winter Level Undergraduate Location/s North Terrace Campus Units 3 Contact Intensive course up to 14 hours per week Available for Study Abroad and Exchange Y Prerequisites ECON 1000 and ECON 1004 or ECON1012; ECON 1008 or ECON 1011 Assumed Knowledge ECON 2504, ECON 2506 Course Description The course analyses the economics of the professional sports industry, which is not only big business but also benefits from public policy favour. The sports industry has many peculiar characteristics that are amenable to economic analysis. Among other topics, the course covers market structure, the labour market, public subsidies for stadia, public funding of bids for mega-events and for the events themselves, and corruption.
Course Coordinator: Professor Richard PomfretCourse Coordinator and Co-Lecturer: Professor Richard Pomfret
Office location: Nexus 10 Building, Room 4.36
Telephone 8313 4751; Email email@example.com
Co-Lecturer: Professor John Siegfried
Office location: Nexus 10 Building, Room 4.29
Telephone 8313 4926; Email firstname.lastname@example.org
Tutor: Aaron Blanco
Professor Siegfried will be primarily responsible for the course from its beginning through the mid-course examination. Professor Pomfret will be primarily responsible for the course after the mid-course examination. The final examination will cover the entire course.Course-related announcements are communicated via email. Please check your student email and MyUni regularly.
The full timetable of all activities for this course can be accessed from Course Planner.Lectures and seminars:
11am - 1 pm on Monday, Tuesday, Wednesday, Thursday and Friday.
Location: Ligertwood 231
Tutorials are daily except for Monday 3 July, Wednesday 12 July or Friday 21 July
2-3pm in Ligertwood 113
3-4pm in Ligertwood 112
Mid-course examination - 90-minute on Wednesday, July 12, at 11:00 am
Final examination - two-hour on Friday, July 21 from 11am - 1 pm
Course Learning OutcomesThe University of Adelaide is a research-intensive university, which seeks to develop graduates of international distinction by supporting high quality education. The University of Adelaide provides an environment where students are encouraged to take responsibility for developing the graduate attributes listed below. Additionally, the continuing development of good inter-personal and communication skills is widely recognised as important for all graduates, and this course specifically seeks to develop students’ abilities to make oral presentations to their tutorial group, and to write a short research report based on assigned reading material.
On successful completion of this course students will be able to:
1 have gained knowledge of the branch of economics devoted to the sports industry 2 have enhanced their analytical skills 3 have gained experience in presenting a report and discussing its content 4 have developed inter-personal and communication skills in small-group discussion
University Graduate Attributes
This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:
University Graduate Attribute Course Learning Outcome(s) Deep discipline knowledge
- informed and infused by cutting edge research, scaffolded throughout their program of studies
- acquired from personal interaction with research active educators, from year 1
- accredited or validated against national or international standards (for relevant programs)
1, 2 Critical thinking and problem solving
- steeped in research methods and rigor
- based on empirical evidence and the scientific approach to knowledge development
- demonstrated through appropriate and relevant assessment
2 Teamwork and communication skills
- developed from, with, and via the SGDE
- honed through assessment and practice throughout the program of studies
- encouraged and valued in all aspects of learning
3, 4 Career and leadership readiness
- technology savvy
- professional and, where relevant, fully accredited
- forward thinking and well informed
- tested and validated by work based experiences
2 Intercultural and ethical competency
- adept at operating in other cultures
- comfortable with different nationalities and social contexts
- Able to determine and contribute to desirable social outcomes
- demonstrated by study abroad or with an understanding of indigenous knowledges
3, 4 Self-awareness and emotional intelligence
- a capacity for self-reflection and a willingness to engage in self-appraisal
- open to objective and constructive feedback from supervisors and peers
- able to negotiate difficult social situations, defuse conflict and engage positively in purposeful debate
2, 3, 4
Required ResourcesWe will draw mainly on two textbooks:
Brad Humphreys: The Economics of Professional Sports: An e-Textbook
You can buy Humphreys’ text as a self-published book on Amazon for around $35.
John Wilson and Richard Pomfret: Public Policy and Professional Sports: International and Australian Experiences (Edward Elgar, 2014).
This is available online to students in the course with a 30% discount. The discount code can be reached via the link: http://www.e-elgar.com/Public-Policy-and-Professional-Sports-Discount-Offer
Other readings are available from the Barr-Smith Library electronically or in hard copy. If you are uncertain about how to access online articles, e-books or other materials read the MyUni Blurb for Economics Students posted on MyUni. If a book is on loan from the library, you can recall it http://www.adelaide.edu.au/library/tutorials/tut08/demo8.html , and it should be available within a week. This is important for Barr-Smith Library staff to judge demand; if there are multiple requests for a book, the library will take action to increase availability.
Students are also recommended to purchase:
Stefan Szymanski: Playbooks and Checkbooks: An Introduction to the Economics of Modern Sports (Princeton UP, 2009).
It is available in paperback, is easy to read, and covers many of the topics in this course.
Readings marked * are in a Subject Reader available from the Image and Copy Centre.
Students are expected to read assignments before tutorials. Be prepared to summarize the articles and/or critically evaluate them. Class participation will be evaluated and will count five per cent toward the overall marks for the subject.
Recommended ResourcesIn addition to the listed readings, you should refer to the following collections, which are available from the Barr-Smith Library:
Wladimir Andreff and Stefan Szymanski: Handbook on the Economics of Sport (Edward Elgar, 2009).
Wolfgang Maennig and Andrew Zimbalist: International Handbook of the Economics of Mega Sporting Events (Edward Elgar, 2012) – BSL e-resource
Additional readings may be posted on MyUni.
The final exam consists of essay questions; the more widely you read (and think about the readings), the more likely you are to write better essays.
Online LearningThe overheads from the lectures and selected reading materials will be available on MyUni.
Learning & Teaching Activities
Learning & Teaching ModesEach topic is divided into a lecture component and a tutorial component. The lecture covers the key concepts of a particular topic to complement the text. Tutorials will consolidate your understanding of course material by working through problems and expand your understanding of course material through group discussion.
The information below is provided as a guide to assist students in engaging appropriately with the course requirements.The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. This translates to 12 hours per week for a semester course.
Learning Activities Summary
Teaching & Learning Activities Related Learning Outcomes Lectures 1 Tutorials 3
Lectures & Seminars Topics Readings Monday 3 July 11.00 - 12.00 Introduction (RP)
12:00 - 13:00 thinking like an economist (JS)
The sports industry [RP]
a) from playing games to big business
- Pomfret, The Evolution of Professional Team Sports, in Pomfret & Wilson Sport through the Lens of Economic History (Elgar 2016), 6-28.
- Szymanski, Playbooks and Checkbooks, (2009) Preface and Ch. 1-2.
- *Szymanski, “The Economic Evolution of Sport and Broadcasting,” Australian Economic Review (2006), pp. 428-34.
- Wilson & Pomfret, Public Policy and Professional Sports:
- International and Australian Experiences, Chap. 2
- Sloane, “The European Model of Sport,” Chap. 28 in Andreff & Szymanski
- Szymanski, “The Anglo-American Model of Sport,” Chap. 29 in Andreff & Szymanski
- *Pomfret and Wilson, “The Peculiar Economics of Public Policy towards Sport,” Agenda (2011), pp. 85-98
- Humphreys, The Economics of Professional Sports, Chap. 1-3
Tuesday 4 July 11.00 - 13.00 Economic importance of sports, Demand for sports (JS)
Tutorial: general economics questions
Economic importance of sports; demand for sports [JS]
- Humphreys, The Economics of Professional Sports, Chap. 2, 3
- *Borland and MacDonald, “Demand for Sport,” Oxford Review of Economic Policy (2003), pp. 478-502.
- *Siegfried & Eisenberg, “Measuring and Forecasting Demand: A Case Study of Baseball Attendance,” Business, Vol. 30 (Jan.–Feb. 1980), 34-41.
- Feehan, “Attendance at Sports Events,” Chap. 9 in Andreff & Szymanski
- *Fort and Winfree, Chap. 10, “Player Salary Demands Increase Ticket Prices,” in 15 Sports Myths and Why They’re Wrong (2013, Stanford University Press)
Wednesday 5 July 11.00 - 13.00 Maximization, inelastic demand (JS)
Tutorial: the economic importance of sports, demand
Demand (continued); maximization; inelastic demand [JS]
- *Salant, Stephen, “Price Setting in Professional Team Sports,” chap. 5 in Paul Sommers, ed., Diamonds are Forever (1992), pp. 63-76.
- Fort, “Inelastic Sports Pricing at the Gate? A Survey," Chap. 77 in Andreff & Szymanski
Thursday 6 July 11.00 - 13.00 More maximization; broadcasting (JS)
Tutorial: competiton, market power, inelastic demand
Maximization (continued) and broadcasting [JS]
- Humphreys, The Economics of Professional Sports, Chap. 4
- Szymanski, Playbooks and Checkbooks, Chap. 3, pp. 59-91
- *Szymanski, “The Economic Evolution of Sport and Broadcasting,” Australian Economic Review (2006), pp. 428-34.
Friday 7 July 11.00 - 13.00 Price discrimination (JS)
Tutorial: maximization; broadcasting
Price discrimination [JS]
- *Clarkson and Miller, Industrial Organization, Chap. 10, “Price Discrimination.”
- *Rascher and Schwarz, “Illustrations of Price Discrimination in Baseball, Chap. 21 in Kahane and Schmanski, eds. Oxford Handbook on the Economics of Sports (2011).
- *Howard and Crompton, “Tactics Used by Sports Organizations in the United States to Increase Ticket Sales,” Managing Leisure (April 2004), pp. 87-95.
Written Assignment 1 Due: based on classes 3-6 July Monday 10 July 11.00 - 13.00 Scalping (JS)
Tutorial: price discrimination
Scalping and catch up to schedule [JS]
- *Courty, “Some Economics of Ticket Resale,” Journal of Economic Perspectives (Spring 2003), pp. 85-97
- *DeSerpa, “To Err is Rational: A Theory of Excess Demand for Tickets,” Managerial and Decision Economics (1994), pp. 511 -518.
- *Williams, “Do Anti-Ticket Scalping Laws Make a Difference?” Managerial and Decision Economics (1994), pp. 503-509.
Tuesday 11 July 11.00 - 13.00 Team and league behaviour (JS)
Tutorial: scalping and league behaviour
Team and league behaviour; competitive balance [JS]
- Humphreys, The Economics of Professional Sports, Chaps. 5 and 7, pp. 103-131 and 147-177.
- *Siegfried, “Sports Player Drafts and Reserve Systems”, Cato Journal (Winter 1995).
- *Siegfried & Sanderson, “Thinking about Competitive Balance,” Journal of Sports Economics (November 2003), pp. 255-279
- Booth, “The Ecoomic Development of the Australian Football League,” Chap. 58 in Andreff & Szymanski
- McMillan, “Rugby: Strategy & Structure,” Ch. 59 in Andreff & Szymanski
- Preston, “The Economics of Cricket,” Chap. 61 in Andreff & Szymanski
Written Assignment 2 Due: (price discrimination and scalping) Wednesday 12 July 11.00 - 12.30 Mid-course exam
Thursday 13 July 11.00 - 12.00 Sources of economic growth; impact analysis (JS)
12:00 - 13:00 Subsidies for stadia (RP)
Tutorial: review of mid-course exam
Economic Impact Analysis [JS]
- Szymanski, Playbooks and Checkbooks, Chap. 5, pp. 125-154
- Humphreys, The Economics of Professional Sports, Chap. 8
- *Siegfried and Zimbalist, “The Economics of Sports Facilities and Their Communities,” Journal of Economic Perspectives (Summer 2000), pp. 95-114.
- Matheson, “Economic Impact analysis” (Chap. 12) and Humphreys, “The Economic Impact of Sporting Facilities” (Chap. 19) in Andreff & Szymanski
- Wilson and Pomfret, Public Policy towards Professional Sports, Ch. 4
- Szymanski, Playbooks and Checkbooks, Chap. 6
- *Coates and Humphreys, “Do Economists Reach a Conclusion on Subsidies for Sports Franchises, Stadiums, and Mega-Events?” Econ Journal Watch (2008), pp. 294- 315
- John Oliver on US sports stadium funding at https://www.youtube.com/watch?v=xcwJt4bcnXs
Friday 14 July 11.00 - 13.00 Mega-events: what are they worth? Why bid? (RP)
Tutorial: impact analysis
- Wilson & Pomfret, Public Policy towards Professional Sports, Ch. 5-6
- *Giesecke and Madden, “Game Over for the Bonanza Story? Economic Papers (2011), pp. 218-232.
- *Baade & Matheson: Going for Gold: The Economics of the Olympics, Journal of Economic Perspectives 30(2), spring 2016, 201-18.
Monday 17 July 11.00 -13.00 Labour markets (RP)
Labour markets [RP]
- Wilson & Pomfret, Public Policy towards Professional Sports, Chap. 3
- Humphreys, The Economics of Professional Sports, Chap. 10
- Szymanski, Playbooks and Checkbooks, Chap. 4
- *Rosen, “The Economics of Superstars,” American Economic Review (1981), pp. 845 – 858.
Tuesday 18 July 11.00 - 13.00 Policy exemptions (RP)
Tutorial: labour markets
Policy exemptions [RP]
- Forbes: Is the AFL obeying our corporations and tax laws? at http://davidforbes.com.au/blogs/12
- Carabetta: In sports violence legal cases, we still don’t know what’s ‘normal’,The Conversation, 1 June 2015,
Written Assignment 3 Due: (analysis of economic impact report) Wednesday 19 July 11.00 - 13.00 Unethical behaviour: gambling, corruption, doping (RP)
Tutorial: assessment of Adelaide Oval
Unethical Behaviour [RP]
- Wilson & Pomfret, Public Policy towards Professional Sports, Ch. 7-8
Thursday 20 July 11.00 - 13.00 overview
Friday 21 July 11.00 – 13.00 FINAL EXAM
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Assessment Task Due Date/ Week Weight Length (Word,Time) Learning Outcomes 3 assignments End week 1;
Tuesday week 2;
Tuesday week 3
3 x 5%
TBA Discussion participation in tutorials in tutorial classes 5% Mid-course Exam Wednesday week 2 30% 90 minutes 1 Final Exam Friday week 3 50% 2 hours 1 Total 100%
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M10 (Coursework Mark Scheme) Grade Mark Description FNS Fail No Submission F 1-49 Fail P 50-64 Pass C 65-74 Credit D 75-84 Distinction HD 85-100 High Distinction CN Continuing NFE No Formal Examination RP Result Pending
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