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Using Baseball Card Prices to Measure Star Quality and Monopsony

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  • Charles J. Mullin
  • Lucia F. Dunn

Abstract

Baseball card prices are used to capture star quality in a new measure of productivity in Major League Baseball. Star quality, which impacts revenues, is determined from a player's baseball card price as the residual in a fit of card prices to performance statistics. This measure is entered into the computation of individual player marginal revenue product and compared to players' salaries using data from the four years leading up to the 1994 MLB strike. Results are examined for monopsonistic exploitation by market size, free agency status, type of player, and other relevant categories. Underpaid and overpaid players are identified. Copyright 2002, Oxford University Press.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Economic Inquiry.

Volume (Year): 40 (2002)
Issue (Month): 4 (October)
Pages: 620-632

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Handle: RePEc:oup:ecinqu:v:40:y:2002:i:4:p:620-632

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Cited by:
  1. Arthur Zillante, 2005. "Survival in a Declining Industry: The Case of Baseball Cards," Industrial Organization 0505004, EconWPA.
  2. Egon Franck & Stephan Nüesch, 2007. "Talent and/or Popularity - What Does it Take to Be a Superstar," Working Papers 0074, University of Zurich, Institute for Strategy and Business Economics (ISU).
  3. Leif Brandes & Egon Franck & Stephan Nuesch, 2006. "Local Heroes and Superstars - An Empirical Analysis of Star Attraction in German Soccer," Working Papers 0046, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2007.
  4. Cornaglia, Francesca & Feldman, Naomi E., 2011. "Productivity, Wages, and Marriage: The Case of Major League Baseball," IZA Discussion Papers 5695, Institute for the Study of Labor (IZA).
  5. Julianne Treme & Samuel K. Allen, 2009. "Widely Received: Payoffs to Player Attributes in the NFL," Economics Bulletin, AccessEcon, vol. 29(3), pages 1631-1643.
  6. Julianne Treme, 2010. "Effects of Celebrity Media Exposure on Box-Office Performance," Journal of Media Economics, Taylor & Francis Journals, vol. 23(1), pages 5-16.

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