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Economies of scale

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In microeconomics, economies of scale are the cost advantages that enterprises obtain due to size, output, or scale of operation, with cost per unit of output generally decreasing with increasing scale as fixed costs are spread out over more units of output.

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Externalities

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an externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit.

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Public goods

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A product that one individual can consume without reducing its availability to another individual and from which no one is excluded. Economists refer to public goods as "non-rivalrous" and "non-excludable".

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Free-riding

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the free rider problem occurs when those who benefit from resources, goods, or services do not pay for them, which results in an under-provision of those goods or services.

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Rent-seeking behavior

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rent-seeking involves seeking to increase one's share of existing wealth without creating new wealth

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Law of unintended consequences

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is that actions of people—and especially of government—always have effects that are unanticipated or unintended.

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Whipping boys

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The scapegoat or fall boy

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Little Dutch boy

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The tendency for schools to react to increased oversight and regulation by the NCAA by seeking loopholes and new ways to circumvent the bylaws. the NCAA typically reacts by promoting even bylaws.

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Sanity code

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Implemented to eliminate the concept of athletic scholarships. Was not effective initially, schools would still pay the athletes even if it was under the table, or with the phantom jobs. The threat of expulsion didn't work because of "the little Dutch boy" phenomenon

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Head count v. equivalency scholarships

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Scholarships within head-count sports are restricted by a set number, and they are all full scholarships. VS. Equivalency sports also have a set number of scholarships, but these teams are allowed to divide the scholarships between multiple athletes.

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Price discrimination

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price differentiation is a pricing strategy where identical or largely similar goods or services are transacted at different prices by the same provider in different markets.

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Nash equilibrium

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the Nash equilibrium is a solution concept of a non-cooperative game involving two or more players, in which each player is assumed to know the equilibrium strategies of the other players, and no player has anything to gain by changing only their own strategy.

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Prisoner's dilemma

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a canonical example of a game analyzed in game theory that shows why two purely "rational" individuals might not cooperate, even if it appears that it is in their best interests to do so

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Dominant strategy

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If a strictly dominant strategy exists for one player in a game, that player will play that strategy in each of the game's Nash equilibria. If both players have a strictly dominant strategy, the game has only one unique Nash equilibrium.

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Arms control agreements

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a term for international restrictions upon the development, production, stockpiling, proliferation and usage of, in the case of the NCAA, collage athletes

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Cartel

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a cartel is an agreement between competing firms to control prices or exclude entry of a new competitor in a market.

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Major infractions

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A violation that provides or is intended to provide a significant or extensive recruiting, competitive, or other advantage, or significant or extensive impermissible benefits. currently referred to as a level 1 violation.

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Secondary Infraction

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a violation that is limited in nature and Provides no more than a minimal benefit.

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Repeated game

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A game of strategy between two players that is repeated more than once.

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Illusion of control

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the tendency for people to overestimate their ability to control events; for example, it occurs when someone feels a sense of control over outcomes that they demonstrably do not influence.

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MRP

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The change in revenue that results from the addition of one extra unit when all other factors are kept equal.

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competitive balance

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Any set of rules established by a sports league designed to maximize the probability that any team in the league has an equal chance to win the championship

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adverse selection

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a concept in economics, insurance, and risk management, which captures the idea of a "rigged" trade. When buyers and sellers have access to different information (asymmetric information), traders with better private information about the quality of a product will selectively participate in trades which benefits them the most

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reservation wage

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The lowest wage rate at which a worker would be willing to accept a particular type of job. A job offer involving the same type of work and the same working conditions, but at a lower wage rate, would be rejected by the worker.

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human capital

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is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

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qualifiers

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A prospective student athlete who meets the NCAA eligibility requirements (A Recruit)

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Academic Progress Rate (APR)

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The Academic Progress Rate is a Division I metric developed to track the academic achievement of teams each academic term. Each student-athlete receiving athletically related financial aid earns one retention point for staying in school and one eligibility point for being academically eligible. Generally a team must have an APR of 930 or higher.

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Graduation Success Rate (GSR)

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More accurately reflect the mobility among all college students today. The NCAA developed its Graduation Success Rate, GSR, in response to criticism that the FGR understates the academic success of athletes because the FGR method does not take into account two important factors in college athletics: 1. When student-athletes transfer from an institution before graduating and are in good academic standing (perhaps to transfer from an institution for more playing time or a different major). 2. Those student-athletes who transfer to an institution (e.g. from a community college or another 4-year college) and earn a degree.

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Flutie effect

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refers to the phenomenon of having a successful college sports team increase the exposure and prominence of a university.

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death penalty

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The death penalty is the popular term for the National Collegiate Athletic Association's power to ban a school from competing in a sport for at least one year. It is the harshest penalty that an NCAA member school can receive.

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winner-take-all markets

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A market in which the best performers are able to capture a very large share of the rewards, and the remaining competitors are left with very little.

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risk aversion/risk seeking

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whether or not someone is willing to take a risk or not.

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winner's curse

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a phenomenon that may occur in common value auctions with incomplete information. In short, the winner's curse says that in such an auction, the winner will tend to overpay.

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ratcheting

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A situation in labor markets in which an increase in one persons salary causes an increase in the salaries of others.

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old boy networks

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The idea that individuals make gainful employment because of who they know rather than their innate talent or productivity in certain cases it may represent a type of occupational discrimination.

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moral hazard

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a situation in which one party gets involved in a risky event knowing that it is protected against the risk and the other party will incur the cost.

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zero-sum game

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a zero-sum game is a mathematical representation of a situation in which each participant's gain (or loss) of utility is exactly balanced by the losses (or gains) of the utility of the other participant(s).

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principal-agent problem

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occurs when one person or entity (the "agent") is able to make decisions on behalf of, or that impact, another person or entity: the "principal" and possibly take advantage of the "Principle".

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In loco parentis

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Colleges acting as the Students parent.

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incentive-compatibility

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occurs when the incentives that motivate the actions of individual participants are consistent with following the rules established by the group.

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vertical integration

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an arrangement in which the supply chain of a company is owned by that company.

Economics of College Sports

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