Alternative Approaches to Measuring MRP: Are All Men's College Basketball Players Exploited?

39 Pages Posted: 8 Jan 2010 Last revised: 22 Mar 2012

See all articles by Erin B. Lane

Erin B. Lane

ApplEcon, LLC

Juan C. Nagel

Universidad de los Andes, Facultad de Ciencias Económicas y Empresariales; ApplEcon, LLC

Janet S. Netz

ApplEcon, LLC

Date Written: March 21, 2012

Abstract

College men’s basketball players have alleged that the NCAA’s illegal cap on athletic scholarships leads to lower scholarships than would prevail in a free market. Recently, the NCAA increased the limit on athletic scholarships. We compare the marginal revenue product (MRP) of men’s basketball players to athletic scholarship caps. We estimate MRPs using players’ playing statistics; information on the distribution of pro salaries; and players’ future draft status. We find that players’ MRPs are greater than the athletic scholarship caps for about 60% of men’s basketball players, not just the star players.

Keywords: MRP, basketball

JEL Classification: J2, J3, L4, L83

Suggested Citation

Lane, Erin B. and Nagel, Juan C. and Netz, Janet S., Alternative Approaches to Measuring MRP: Are All Men's College Basketball Players Exploited? (March 21, 2012). Available at SSRN: https://ssrn.com/abstract=1532886 or http://dx.doi.org/10.2139/ssrn.1532886

Erin B. Lane

ApplEcon, LLC ( email )

617 E. Huron St.
Ann Arbor, MI 48104
United States

Juan C. Nagel

Universidad de los Andes, Facultad de Ciencias Económicas y Empresariales ( email )

Chile

ApplEcon, LLC ( email )

617 East Huron Street
Ann Arbor, MI 48104
United States
(734) 214-2235 (Phone)

Janet S. Netz (Contact Author)

ApplEcon, LLC ( email )

617 East Huron Street
Ann Arbor, MI 48104
United States
(734) 213-1930 (Phone)

HOME PAGE: http://www.applecon.com

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
292
Abstract Views
1,722
rank
124,354
PlumX Metrics