What's Wrong with Scully-Estimates of a Player's Marginal Revenue Product
AbstractEstimates of baseball players' marginal revenue product, derived from the methodology introduced by Gerald Scully over twenty years ago in the American Economic Review, suggest that even the highest-paid players are grossly underpaid. But, given the fiercely competitive bidding process for free agents, it is hard to believe that owners can maintain salaries significantly below marginal revenue product. In this paper, an alternative approach for estimating a player's economic value is proposed. It uses market information gleaned from free agent contract negotiations. When applied to the less-mobile segment of the player market, this method yields much more reasonable estimates of players' marginal revenue products. Copyright 1999 by Oxford University Press.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Western Economic Association International in its journal Economic Inquiry.
Volume (Year): 37 (1999)
Issue (Month): 2 (April)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://ei.oupjournals.org/
More information through EDIRC
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- John D. Burger & Stephen J.K. Walters, 2006.
"The Existence and Persistence of a Winner’s Curse: New Evidence from the (Baseball) Field,"
0625, International Association of Sports Economists & North American Association of Sports Economists.
- John D. Burger & Stephen J.K. Walters, 2008. "The Existence and Persistence of a Winner's Curse: New Evidence from the (Baseball) Field," Southern Economic Journal, Southern Economic Association, vol. 75(1), pages 232-245, July.
- Holmes, Paul, 2011. "New evidence of salary discrimination in major league baseball," Labour Economics, Elsevier, vol. 18(3), pages 320-331, June.
- Jennifer K. Ashcraft & Craig A. Depken, II, 2007. "The Introduction of the Reserve Clause in Major League Baseball: Evidence of its Impact on Select Player Salaries During the 1880s," Working Papers 0710, International Association of Sports Economists & North American Association of Sports Economists.
- Michael Haupert & James Murray, 2012.
"Regime switching and wages in major league baseball under the reserve clause,"
Cliometrica, Journal of Historical Economics and Econometric History,
Association Française de Cliométrie (AFC), vol. 6(2), pages 143-162, May.
- Haupert, Michael & Murray, James, 2011. "Regime Switching and Wages in Major League Baseball under the Reserve Clause," MPRA Paper 29094, University Library of Munich, Germany.
- Aya S. Chacar & William Hesterly, 2008. "Institutional settings and rent appropriation by knowledge-based employees: the case of Major League Baseball," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(2-3), pages 117-136.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.