After introducing the professional sports industry, HCKY-641: The Business of Hockey takes a detailed look at how professional sports teams make decisions in the short run and the long run. In the short run, teams make profit-maximizing decisions about how to price tickets and attract fans. In the long run, teams make profit-maximizing decisions about how much playing talent to acquire and how much on-ice success they should seek. The course then examines the role played by sports leagues and the way that teams interact in sports leagues, paying special attention to the zero-sum nature of team success in sports leagues—not all teams in a league can have a winning record in a given season. Finally, the course turns to team decisions about the two main inputs to production: players and facilities. Students will also have an opportunity to undertake a quantitative analysis of outcomes in the NHL to understand how competitive balance has changed in the league and how changes like the opening of a new arena relates to team success.
|Lesson 8: Economics refresher|