ECON 3520 - Sports Economics III

Course Details

Course Code	ECON 3520
Course	Sports Economics III
Coordinating Unit	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
Assessment	Typically, assignments, mid-term test & final exam

Course Staff

Course Coordinator: Professor Richard Pomfret

Course Coordinator and Co-Lecturer: Professor Richard Pomfret
Office location: Nexus 10 Building, Room 4.36
Telephone 8313 4751; Email richard.pomfret@adelaide.edu.au

Co-Lecturer: Professor John Siegfried
Office location: Nexus 10 Building, Room 4.29
Telephone 8313 4926; Email john.siegfried@vanderbilt.edu

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.

Course Timetable

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:
Tutorials are daily except for Monday 3 July, Wednesday 12 July or Friday 21 July
Location:
2-3pm in Ligertwood 113
3-4pm in Ligertwood 112

Examinations:
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 Outcomes

The 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 Resources

We 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 Resources

In 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 Learning

The overheads from the lectures and selected reading materials will be available on MyUni.

Learning & Teaching Modes

Each 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.

Workload

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

Lecture Schedule

Lectures & Seminars	Topics	Readings
Monday 3 July	11.00 - 12.00 Introduction (RP) 12:00 - 13:00 thinking like an economist (JS) No tutorial	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. b) industrial organization of team sports 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 c) public policy towards professional sports Pomfret and Wilson, “The Peculiar Economics of Public Policy towards Sport,” Agenda* (2011), pp. 85-98 Thinking like an economist [JS] 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 No tutorial
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 Subsidies for stadia [RP] 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	Mega-events [RP] 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) Tutorial: mega-events	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 Tutorial: revision
Friday 21 July	11.00 – 13.00 FINAL EXAM No Tutorial

The University's policy on Assessment for Coursework Programs is based on the following four principles:

Assessment must encourage and reinforce learning.
Assessment must enable robust and fair judgements about student performance.
Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
Assessment must maintain academic standards.

Assessment Summary

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% (total 15%)	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%

Assessment Detail

Students are expected to hand in three sets of assignments, each worth 5%, and to prepare and participate in tutorial discussion of assigned key articles (worth 5%).

The mid-semester exam, whose format and content will be announced in class and posted on MyUni, is intended to provide feedback on students’ progress over the first half of the course.

The final examination requires students to write extended essay-style answers to two questions. Sample exam questions will be posted on MyUni. The final exam will cover the entire course. All material from the classes and required readings is examinable; wider reading and deeper thinking are likely to be rewarded by higher grades. Students’ work will be assessed on the logical quality of the arguments presented and on the ability to determine which arguments better explain the facts. Legible hand-writing and the quality of English expression are integral parts of the assessment process; marks may be deducted in the final examination because of poor hand-writing.

Students may NOT take a DICTIONARY (English or English-Foreign) or a CALCULATOR into the examination.

Submission

No late submission of assignments will be accepted.

Course Grading

Grades for your performance in this course will be awarded in accordance with the following scheme:

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

Further details of the grades/results can be obtained from Examinations.

Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

Final results for this course will be made available through Access Adelaide.

Additional Assessment

If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.

The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

This section contains links to relevant assessment-related policies and guidelines - all university policies.

Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

Authorised by:	Deputy Vice-Chancellor and Vice-President (Academic)
Maintained by:	Course Outlines Administrator