NCAA Tourny ain’t worth much!
Jordan asks: “…how do you value a basketball team on [sic] the NCAA tournament?”
I think it is interesting to stand back and ponder the value of the tournament. From a U.S. economy standpoint, an argument can be made that the tournament adds no value to the U.S. economy.
If 70 percent of the U.S. economy is explained by consumption, and consumption dollars as a percent of the U.S. economy are fixed, then the entertainment consumption dollars spent on the NCAA tournament are merely shifted from other consumption options. That is total consumption and total GDP are not increased because of the tournament.
Thus, the tournament does not add to our economic well being, unless, of course, we get more entertainment per dollar spent on the tournament versus the spending on other entertainment options.
Go MSU Spartans!
Posted on Thu, March 18, 2010
by Timothy E. Moffit