The Combines Act :: essays research papers

The Combines ActJ.C.H. Joness phrase "The Economics of the National hockey League" (1969)purpose is to explain through simple micro economics that the prime motive of lord hockey team owners is emolument maximization. The owners fence thattheir main interest is "for the love of the game," not the financial benefits ofowning a professional sports franchise and to avoid government regulations suchas the Combines Act (note 1).An article written in 1982 by J.A. Schofield entitled "The Development of First gradation Cricket in England," states the behavior of sport cartels. Threehypothesises are use to explain the behavior described by Schofield, number twoorganism developed by J.C.H. Jones (1969). (1) The profit maximization hypothesis.(2)The joint profit maximization hypothesis that the entire cartel (league)strives for. This hypothesis does not incorporate non profit objectives thatinfluence group behavior. (3) The utility maximization good example that every last(predicate)ow for many an(prenominal)possibilities usually compromising arguments such as the success of the team ata given year and remunerative attendance for the teams venue.By explaining the shape work of a professional sports league Jones introduces usto factors that make an nonionic league function, which seems quite familiar toany other monopolistic markets. Since no team can create any revenue bythemselves they essential form a spinal fusion with another club to produce a profitgenerating output, namely a hockey game. Other clubs enter this coalition thuscreating a formal league which we call the National hockey League. Jones thenstates how revenue is generated in the N.H.L and how it is affected by certainfactors.A theoretical model of the N.H.L is created by Jones with all things being equal,creating an equilibrium amongst all clubs. The model is then adjusted to reallife variables that turns his theoretical model into what we know as the N.H.L.Jones var iables includes the incentive for teams to win (this being the StanelyCup), different fibre of players, the recreational draft (a draft at the end of theseason which amateur players a selected, last place team gets first pick and soforth), and player redistribution(trades).By applying microtheory Jones clearly presents his argument which I was able to guess with my current knowledge of microeconomics. Jones examines therevenue side of an individual team utilise the usual variables tastes, prices,incomes, quality and substitutes. On the supply side Jones stresses that themajor fragment is the human inputs namely the hockey players. The data that Jonesused was team statistics such as their final rank at the end of the season andthe paid attendance as a percentage of maximum seating capacity.