Chapter 2

Cartels in College Sports

2.1 Introduction

The statement above would probably surprise many college students, parents, alumni, and legislators. Most people do not even think of college sports as a business, and even if they did, with hundreds of colleges and universities competing against each other, how can it be a monopoly? And as for the NCAA itself, the "basic purpose of [the] Association is to maintain intercollegiate athletics as an integral part of the educational program" (Article of the NCAA constitution), not to promote anti-competitive behavior.

The focus of this chapter is to examine the evidence for a monopoly in the market for big-time college sports, particularly top-level men's football and basketball. It begins with an overview of the economic...