(29 points) The NCAA is often referred to as an \"incidental cartel- a. b. What
ID: 1126944 • Letter: #
Question
(29 points) The NCAA is often referred to as an "incidental cartel- a. b. What is a cartel and why is the NCAA It has been said that a cartel must referred to an "incidental" cartel? be guaranteed that some of its members do not "bolt' the cartel and establish their own cartel. What action on the part of the NCAA suggests that this was a potential problem, and how did the NCAA deal with this potential problem? C. What would be the consequences for intercollegiate sports if each student was paid is, marginal revenue product?Explanation / Answer
a
A cartel is an organization created from a formal agreement between a group of producers of a good or service to regulate supply in an effort to regulate or manipulate prices.
NCAA is nither a monopoly nor a monopsony in the classic sense, it is a collection of schools that have come together.
It acts like a cartel it differs from the classic image of a cartel in the following ways ;
it is not formed in order to monopolize the market as it was formed to formulate the rules of play on the football ground, from regulating behaviour in the field it moved to regulating behaviour off the field as well eventually morphing into a multi million dollar organization that carefully protects its financial intrests. This gradual evolution into a collusive structure has lead economists to call the NCAA an incidental cartel.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.