In discussing the NCAA, the late Nobel Laureate Gary Becker, an economist, wrote, Ă˘â‚¬Ĺ“It is impossible for an outsider to look at these [NCAA] rules without concluding that their main aim is to make the NCAA an effective cartel that severely constrains competition among schools for players.Ă˘â‚¬Âť
a. What is a cartel? In what ways does the NCAA act like a cartel?
b. Who gains and who loses as a result of the NCAA acting like a cartel? If you are a student who does not play intercollegiate sports but who is enrolled at a school, such as the University of Alabama or Ohio State University, with prominent sports teams, does the NCAA acting as a cartel make you better off or worse off? Briefly explain.
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