22 Pages Posted: 20 Mar 2012
Date Written: January 4, 2012
This paper employs a methodology similar to Brown (1993, 1994) to estimate the marginal revenue generated by a top-flight NCAA Division I college hockey player. This paper adds to the extant literature in two ways. First, the previous research focused on college basketball and football players and this is the first attempt to consider the case of college hockey players. Second, previous research has been conducted using relatively small, cross-sections of data. In this paper a larger, panel dataset is employed. Empirical results show that top-flight college hockey players generate between $131and $165 thousand in added revenues to schools. According to the NCAA the average value of an athletic scholarship is between $14 thousand (for in-state public schools) to $32 thousand (private schools) in 2008. This implies that a premium college hockey player generates rents in excess of $100 thousand per year for the typical institution.
Keywords: marginal revenue product, college hockey
JEL Classification: J4, l83
Suggested Citation: Suggested Citation