A Good Walk Foiled: Monopoly Power and Barriers to Entry into the PGA Tour |
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| Authors: | Scott Hamel Steven B Caudill Franklin G Mixon Jr |
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| Institution: | 1. Department of Economics, Rhodes College, Memphis, TN, USA;2. Department of Economics, Florida Atlantic University, Boca Raton, FL, USA;3. Center for Economic Education, Columbus State University, Columbus, GA, USA |
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| Abstract: | In order to explore whether the PGA Tour's 2013 qualifications amendments represent a meritocratic evolution or simply a monopolistic barrier to entry, this study compares the results of the 2014 PGA Tour to those of the Web.com Tour. Upon empirical examination of each tour's earnings, scoring characteristics, and course characteristics, we are able to predict the marginal skill differences between players on the two tours. In doing so, we illustrate that sufficiently talented Web.com Tour golfers are being excluded from participation in the PGA Tour. As such, the changes made by the PGA Tour regarding qualification perhaps run counter to welfare maximization in terms of tour participants and fans of professional golf. Copyright © 2015 John Wiley & Sons, Ltd. |
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