Publication Date
10-2024
Abstract
The exogenous removal of labor restrictions mandated by Alston vs. NCAA (National Collegiate Athletic Association) has provided a unique natural experiment for analyzing the impact of demonopsonization on market concentration. Using basketball tournament data between 2003 and 2024 we find evidence of increased concentration in performance among higher-tiered programs. The larger magnitude of estimates for women’s programs likely results from wider dispersion in market demand for participating programs predating the reforms. We also analyze parity in regular-season conference play and fail to detect a relationship between the changes and dispersion for higher-tiered conferences, but we do find a relationship for lower-tiered conferences, a result we attribute to adjustments to increased transfers toward more prominent programs. These findings are crucial not only for measuring the effects of removing mobility barriers but also for offering valuable insights into the broader economic impact as universities adjust to evolving financial realities.
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