Pay, Performance, and Competitive Balance in the National Hockey League
AbstractThis paper uses data from the National Hockey League to address several issues that arise in the economic analysis of a professional sports league. Data on players' salaries reveal substantial growth in average salary and a steady increase in the dispersion of salaries between 1989-90 and 1995-96. Marginal revenue products, computed for 520 players in the 1993-94 season, are used to test hypotheses about the relationship between pay and performance and to measure the effect of free agency. Several measures of competitive balance are employed to investigate the proposition that team playing strength is invariant with respect to institutional changes.
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Bibliographic InfoArticle provided by Eastern Economic Association in its journal Eastern Economic Journal.
Volume (Year): 26 (2000)
Issue (Month): 4 (Fall)
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Find related papers by JEL classification:
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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- Cebula, Richard, 2009. "Teaching How Private Enterprise Works Using Professional Sports: A Brief Note on the Case of Individual NHL Players' Salaries," MPRA Paper 50978, University Library of Munich, Germany.
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