So I posted this over on Haas in another thread but I figured it would be buried and it is a bit of a new topic (plus appeals to my interest in sports economics).
Does anyone have visibility (donor groups, calls with coaches, maybe direct working with an athlete) how the information issues in this market actually work? Consider the contrast with professional sports. There are numerous mechanisms that make relatively transparent what the "market" is for X. The specific deals are sometimes actually negotiated in the press.
But right now we have at best "rumors" from "insiders" about what is or isn't being offered. I am not doubting them but I am doubting (because of incentives) that they are getting the straight scoop from agents. The coaches/GMs are unlikely getting good information from fellow coaches because that would be stupid to share (it is a great example of a mixed motive game). When someone says that X, for example, is "getting" >2 million a year how is that even known. As an agent I have EVERY reason to inflate that . If a school I have every incentive to neither confirm or deny. And as a player I have every reason to inflate. It is a classic situation of information asymmetries
Does anyone have visibility (donor groups, calls with coaches, maybe direct working with an athlete) how the information issues in this market actually work? Consider the contrast with professional sports. There are numerous mechanisms that make relatively transparent what the "market" is for X. The specific deals are sometimes actually negotiated in the press.
But right now we have at best "rumors" from "insiders" about what is or isn't being offered. I am not doubting them but I am doubting (because of incentives) that they are getting the straight scoop from agents. The coaches/GMs are unlikely getting good information from fellow coaches because that would be stupid to share (it is a great example of a mixed motive game). When someone says that X, for example, is "getting" >2 million a year how is that even known. As an agent I have EVERY reason to inflate that . If a school I have every incentive to neither confirm or deny. And as a player I have every reason to inflate. It is a classic situation of information asymmetries
Take care of your Chicken