The NCAA and the Rule of Reason

This brief essay considers the use of antitrust’s rule of reason in assessing challenges to rule-making by the NCAA. In particular, it looks at the O’Bannon case, which involved challenges to NCAA rules that limit the compensation of student athletes under the NCAA rubric that protects the “amateur” status of collegiate athletes. Within that rubric, the Ninth Circuit got the right answer. That outcome leads to a broader question, however: Should the NCAA’s long held goal, frequently supported by the courts, of preserving athletic amateurism be jettisoned? Given the dual role that colleges play, that is a complex question, which raises issues that are not only commercial but also educational. More important for the purpose at hand, is whether jettisoning amateurism in NCAA athletics is a suitable task for an antitrust tribunal. This paper argues that antitrust law is not an appropriate vehicle for addressing that issue. This does not mean that antitrust has no role to play in policing athlete compensation in NCAA schools. But it does suggest that that role be limited to addressing restraints on trade that occur within the rubric of amateur status—at least until such time as a more competent body decides whether amateurism in collegiate athletics is worth preserving.     

The National Collegiate Athletic Association Cartel: Why it Exists,How it Works,and What it Does

In this essay we consider why American colleges and universities participate in big-time commercialized intercollegiate sports, and how sports came to play such a prominent role on American college and university campuses. We also review how the National Collegiate Athletic Association (NCAA) developed as a body to regulate player safety and transformed itself into an economic regulator, the means by which the NCAA attempts to maintain its control, increase revenues, and reduce costs for college sports programs. We also examine how the organization succeeds in the face of institutional characteristics that imply that its cartel activities would be doomed. Finally, we speculate on what changes might be on the horizon for the NCAA and college athletics.     

Athlete Pay and Competitive Balance in College Athletics

In this paper we analyze the argument—which has been used by both the National Labor Relations Board and the National Collegiate Athletic Association—that unionization and/or player pay will hurt competitive balance in college sports. We present a theoretical analysis of universities that recruit athletes and examine the assumptions that are needed for player compensation to decrease competitive balance. We also empirically illustrate the differences in balance between professional and college sports. Given the theoretical and empirical analysis, we argue that unionization and/or player pay is unlikely to hurt competitive balance.     

State of Play: How Do College Football Programs Compete for Student Athletes?

Each year high school football players sign letters of intent with college football programs. The NCAA governs this matching market with strict rules that are designed to protect amateurism. DuMond et al. (J Sports Econ 9(1):67–87, 2008) develop a model of athlete choice. I consider the matching puzzle from the program’s perspective: What factors increase the likelihood that a school will successfully recruit an athlete? Like DuMond et al., I find that the state of play matters. However, my results suggest that football programs are willing to recruit outside their borders. In addition, the results align with prior findings about cheating in the NCAA. This extends the literature on college sport recruiting and may provide insight into other matching puzzles in academic, medical, and business job markets.     

The Role of Broadcasting in National Collegiate Athletic Association Sports

This essay describes important technological changes with regard to broadcasting and the growth of new revenue streams that those changes have created over the last 30 years and their influence on how, when, where and even for whom college sports are played. We discuss college sports broadcasting history, including the advent of cable television and new media technologies, complementary industries such as sponsorships and apparel, and public goods and winner-take-all market considerations as they relate to broadcasting. We examine the impact of these changes on the National Collegiate Athletic Association and its members as they adjust to, and compete for this new money that is on the table. Finally, we speculate about how all of this might play out by 2030.     

Vertical Restraints,the <Emphasis Type="Italic">Sylvania</Emphasis> Case,and China’s Antitrust Enforcement

We briefly review the relevant economic theories and legal treatment of vertical restraints, and especially focus on the 1977 landmark case of Sylvania and its possible influence on China’s antitrust enforcement on vertical restraints. China’s competition policy, and particularly its antimonopoly law, does not explicitly instruct with respect to the enforcement approach (per se versus rule of reason) toward vertical restraints. But from an overview of China’s recent antitrust cases, we find that there is a division in the approaches taken by public versus private enforcement: Even though the administrative enforcement is more inclined to the application of per se prohibitions (or the application of the EU-style prohibition-plus-exemption approach), it seems that a rule of reason is the (increasingly) prevailing approach that is taken by the courts.     

Resale Price Maintenance: An Economic Analysis of its Anticompetitive Potential

A decade ago, Leegin overruled Dr. Miles and subjected RPM to rule-of-reason treatment, under which the potential for anticompetitive conduct should be analyzed (rather than automatically assumed to be present). In its Leegin decision, the Supreme Court identified four ways in which RPM could be used to retard competition and consequently reduce consumer welfare: The first two involve the well-known concerns that RPM could be used to support either a manufacturer cartel or a dealer cartel; the last two involve unilateral conduct designed to foreclose entry or hinder smaller rivals. In this paper, we analyze these potentially harmful uses of RPM. We conclude that RPM does not pose a substantial anticompetitive threat.     

Post-cartel tacit collusion: Determinants,consequences, and prevention

We experimentally investigate the determinants of post-cartel tacit collusion (PCTC), the effects of PCTC on market outcomes, and potential policy measures aimed at its prevention. PCTC occurs robustly with or without fines or leniency and is determined both by collusive price hysteresis and learning about cartel partners’ characteristics and strategies. As a result, it is also strongly related to the preceding cartel success. PCTC generates a downward bias in the estimated cartel overcharges. This threatens the effectiveness of deterrence induced by private damage litigation and fines imposed on colluding firms based on the overcharge. This bias further increases with preceding cartel stability such that especially more stable sets of colluding firms may be deterred less when PCTC is present. Rematching colluding subjects with strangers within a session prevents PCTC. This indicates that barring colluding managers from their posts could help impede PCTC in the field.     

Examining design cognition coding schemes for P-12 engineering/technology education

Cultivating students’ design abilities can be highly beneficial for the learning of science, technology, engineering, and mathematics (STEM) concepts, and development of higher-order thinking capabilities (National Academy of Engineering and National Research Council in STEM integration in k-12 education: status, prospects, and an agenda for research, The National Academies Press, Washington, 2014). Therefore, examining students’ strategies, how they distribute their cognitive effort, and confront STEM concepts during design experiences, can help educators identify effective and developmentally appropriate methods for teaching and scaffolding design activities for students (National Research Council in standards for k-12 engineering education? The National Academies Press, Washington, 2010). Yet, educational researchers have only recently begun examining students’ engineering design cognition at the P-12 level, despite reports such as Standards for K-12 Engineering Education? (National Research Council 2010) designating this area of research as lackluster. Of the recent studies that have investigated engineering design cognition at the P-12 level, the primary method of investigation has been verbal protocol analysis using a think-aloud method (Grubbs in further characterization of high school pre- and non-engineering students’ cognitive activity during engineering design, 2016). This methodology captures participants’ verbalization of their thought process as they solve a design challenge. Analysis is typically conducted by applying a pre-determined coding scheme, or one that emerges, to determine the distribution of a group’s or an individual’s cognition. Consequently, researchers have employed a variety of coding schemes to examine and describe students’ design cognition. Given the steady increase of explorations into connections between P-12 engineering design cognition and development of student cognitive competencies, it becomes increasingly important to understand and choose the most appropriate coding schemes available, as each has its own intent and characteristics. Therefore, this article presents an examination of recent P-12 design cognition coding schemes with the purpose of providing a background for selecting and applying a scheme for a specific outcome, which can better enable the synthesis and comparison of findings across studies. Ultimately, the aim is to aid others in choosing an appropriate coding scheme, with cognizance of research analysis intent and characteristics of research design, while improving the intentional scaffolding and support of design challenges.     

Life expectancy of international cartels: An empirical analysis

This paper quantifies the importance of the various determinants of life expectancy for international cartels active throughout this century. I explain cartels' optimal duration as a function of market structure and demand growth and estimate the associated parameters recognizing that durability cannot be negative. According to the results, increases in either market shares or cartel concentration prolong life expectancy. Faster demand growth shortens cartel durability but this effect is not reliable. I also find that growth effects are sensitive to both the period of activity and the country coverage.The calculations in this paper use LIMDEP version 5.0. I am grateful to participants in seminars at the Federal Reserve Board and the U.S. International Trade Commission; to Alexander David, Jon Faust, Michael Gibson, William Greene, James Griffin, William Helkie, Dale Henderson, John Irons, Doug Irwin, Michael Leahy, Matthew Pritsker, Stephen Salant, and Janice Shack-Marquez for several suggestions. I also received very useful comments from two anonymous referees. The views expressed in this paper are solely the responsibility of the author and should not be interpreted as reflecting those of the Board of Governors of the Federal Reserve System or other members of its staff.     

<Emphasis Type="Italic">Sylvania’s</Emphasis> Indian Precursor and Its Legacy

The starting point of this paper is a January 1977 judgment of the Indian Supreme Court, which applied the rule of reason to vertical restraints and anticipated many of the arguments of the Sylvania judgment. After summarizing the background of the Indian case, I set out the main points of similarity and difference between the two judgments, and finally assess the somewhat erratic influence of post-Sylvania antitrust thinking on Indian competition law and jurisprudence.     

Inducing Cooperation with a Carrot Instead of a Stick

The Supreme Court’s reasoning in Leegin turned on the insight that manufacturers may use resale price maintenance (RPM) for procompetitive purposes. This paper presents a model of manufacturer-retailer interactions that clarifies why, as a rule, retailers and manufacturers are joint beneficiaries of service-inducing RPM. The model identifies factors that determine how RPM-generated benefits are allocated between a manufacturer and its retailers. The paper then shows that manufacturers may use market share discounts (MSD) in lieu of RPM or other vertical restraints to induce retailer performance. The outcomes and efficiency effects that are achieved with RPM can be replicated and usually surpassed if manufacturers substitute MSD for RPM, thereby enabling a manufacturer to retain all incremental profit rather than conceding some of it to retailers.     

Bridging a gap: in search of an analytical tool capturing teachers’ perceptions of their own teaching

Computing and computers are introduced in school as important examples of technology, sometimes as a subject matter of their own, and sometimes they are used as tools for other subjects. All in all, one might even say that learning about computing and computers is part of learning about technology. Lately, many countries have implemented programming in their curricula as a means to address society’s dependence on, and need for programming knowledge and code. Programming is a fairly new school subject without educational traditions and, due to the rapid technological development, in constant change. This means that most programming teachers must decide for themselves what and how to teach. In this study, programming teachers’ teaching is studied. With the aim of exploring the connection/possible gap between teacher’s intentions and the teacher’s instructional practice, an expansion of the conceptual apparatus of phenomenography and variation theory is tested. In the article, phenomenography and variation theory and the suggested supplementary theoretical tool (Georg Henrik von Wright’s model of logic of events) are briefly presented and then deployed upon one selected case. Findings reveal that teachers’ intentions (reflected in their actions) include an emphasis (of teachers’ side) on the importance of balancing theory and practice, using different learning strategies, encouraging learning by trial-and-error and fostering collaboration between students for a deeper understanding of concepts. In conclusion, logic of events interpretations proves to be useful as a complementary tool to the conceptual apparatus of phenomenography.     

Model Exit in a Vertically Differentiated Market: Interfirm Competition versus Intrafirm Cannibalization in the Computer Hard Disk Drive Industry

What characteristics of a product’s local market make its withdrawal more likely? This study investigates the importance of intrafirm “cannibalization” of a product’s demand by products manufactured by the same firm versus interfirm competition from others’ products. While both forces impact product withdrawal, cannibalization has a more robust and significant effect. Hedonic price regressions also reveal higher discounting of older models’ quality-adjusted prices, strengthening the argument for caution when treating list prices as proxies for transaction prices.     

The NCAA Cartel and Competitive Balance in College Football

The NCAA regulates college football player recruiting, eligibility, and compensation. The economic theory of cartels suggests that one consequence may be reduced competitive balance. The enforced restrictions inhibit weak teams from improving, and protect strong teams from competition. A stratification is implied which should be evident over time as less churning in national rankings and conference standings, and fewer schools achieving national prominence. I test this general hypothesis by comparing various competitive balance measures for about 25 years before and after NCAA enforcement began in 1952. The hypothesis is supported by all measures at both the national and conference levels.     

Why do Chinese employees build supervisor-subordinate <Emphasis Type="Italic">guanxi</Emphasis>? A motivational analysis

Supervisor-subordinate guanxi is an informal leader-member relationship that is of utmost importance in Chinese organizations. This paper explores Chinese employees’ motives for building supervisor-subordinate guanxi through two studies. Study 1 develops an indigenous scale of motives for supervisor-subordinate guanxi. Four motive types (i.e., career advancement, team concern, personal life, and impression management) are identified, and the scale’s convergent and discriminant validity is established. Study 2 examines the predictive power of these motive types. The results indicate that they, as a whole, account for unique variances in supervisor-subordinate guanxi. Furthermore, as single motive types, they have unequal impacts on this relationship and its dimensions. This research enhances understanding of what underlies supervisor-subordinate guanxi from a motivational perspective and has implications for Chinese indigenous research of guanxi.     

大学生服装消费行为影响因素实证研究

大学生是服装消费的特殊群体,其消费行为不仅代表服装消费的潮流与导向,更对未来消费文化的构成产生着重要影响。本文建立了大学生服装消费行为影响因素概念模型并提出假设,通过问卷调查,运用因子分析、回归分析等方法进行验证,探讨了影响大学生服装消费行为的关键因素。     

Competition,Innovation and the Use of Innovations

I examine the effect of competition on the production and use of innovations using evidence from a natural experiment of policy reform, the introduction of cartel legislation in the U.K. in the late 1950’s. I compare manufacturing industries which had been collusive and were therefore affected by the policy with those that had been competitive and were not affected. The intensification of competition following the abolition of cartels caused a short‐run decrease in innovations produced, but had no significant effect in the long run. In contrast, innovations used increased both in the short run and in the long run.     

Resale Price Maintenance Post Leegin: A Model of RPM Incentives

The prominent Babies R Us decision (McDonough et al. v. Toys R Us, Inc., 2009) was the first to explore the economic consequences of resale price maintenance after the Supreme Court’s Leegin decision. Previously, litigation concerned the presence or absence of an agreement; but that changed with the new jurisprudence which instead emphasized the restraint’s direct anti-competitive effects. While the district court’s decision in the Babies R Us case rested on the factual circumstances of the case, it did not have before it an economic model through which those facts could be integrated. This paper offers such a model, the predicates of which are drawn from the case. The conclusions derived from the model are entirely consistent with the court’s decision     

Using software to engage design students in academic writing

First year undergraduate design students have found difficulties in realising the standards expected for academic writing at university level. An assessment initiative was used to engage students with criteria and standards for a core interdisciplinary design subject notable for its demanding assessment of academic writing. The same graduate attribute categories linked to assessment criteria and web-based software (REVIEW?) were used for assessing students’ other design assignments. Students engaged with criterion-referenced assessment of an essay exemplar in order to reflect on their own essay writing process. Tutor marking of the exemplar and student essays used a visual mark on a grading scale to reveal the variation between the tutor’s marks and students’ own judgments against each criterion. Data from the software and post-semester focus group discussions and questionnaires showed that the initiative promoted engagement and dialogue between tutors and students and fostered independence and confidence. Results suggest that students’ understanding of the required academic writing standards was improved by this reflective intervention and increased their appreciation that writing and research skills are important attributes for designers.