govern competition

The National Collegiate Athletic Association (NCAA) aims to “govern competition in a fair, safe, equitable and sportsmanlikemanner, and to integrate intercollegiate athletics into higher education so that the educational experience of the student-athlete is paramount.”

The NCAA restricts the amounts that member colleges and universities may pay their student athletes (generally limited to the full cost of their education) and requires student athletes to attend full-time programs of study.

(a) What market power does the NCAA have, and what are its source(s)?

(b) If the US government were to forbid the NCAA from such restrictive practices, what would happen to: (i) each athlete’s earnings, and (ii) the number of athletes?