Rent-seeking in higher education: Voting on academic requirements

Research on U.S. college athletics suggests that voting on academic eligibility rules is motivated by rent-seeking behavior. Furthermore, academic eligibility rules have been criticized as being racially biased — more blacks than whites fail to meet the requirements. This paper examines whether the potential racial bias impacted voting on a specific academic eligibility rule known as Proposition 42. Evidence of customer discrimination suggests revenue generating differentials between black and white college basketball players. If rent-seeking behavior motivates voting on academic eligibility rules, then the racial composition of recruits and fans may be determinants of Proposition 42 voting. The results show that schools with more black fans were more likely to oppose Proposition 42; however, schools with a larger pool of potential black recruits tended to favor it, perhaps due to a comparative advantage in recruiting black student-athletes.