Rethinking Restrictions On Player Mobility In Major League Baseball
AbstractThis article considers the possibility that transactions costs and asymmetric income effects have altered the distribution of talent in the aftermath of institutional changes in Major League Baseball. This contradicts the invariance principle of Coase's theorem. Empirical evidence tracking player movement and competitive balance over the past 50 years conclusively supports these stands. Free agency, when permitted to proceed with limited intereference, has increased the rate that productive players transfer and has also improved some measures of competitive balance. Competitive balance is also shown to have improved with the implementation of the draft. Policy prescriptions calling for increased restrictions on player mobility are ill advised. Copyright 2002 Western Economic Association International.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Contemporary Economic Policy.
Volume (Year): 20 (2002)
Issue (Month): 2 (04)
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- Joel Maxcy, 2009. "Progressive Revenue Sharing in Major League Baseball: The Effect on Player Transfers and Talent Distribution," Review of Industrial Organization, Springer, vol. 35(3), pages 275-297, November.
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- Joel G. Maxcy, 2007. "Progressive Revenue Sharing in MLB: The Effect on Player Transfers," Working Papers 0728, International Association of Sports Economists & North American Association of Sports Economists.
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