IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v15y2014i3p237-262.html
   My bibliography  Save this article

Alternative Approaches to Measuring MRP

Author

Listed:
  • Erin Lane
  • Juan Nagel
  • Janet S. Netz

Abstract

College men’s basketball players have alleged that the National Collegiate Athletic Association’s (NCAA) cap on athletic scholarships is illegal and leads to lower scholarships than would prevail in a free market. Recently, the NCAA increased the limit on athletic scholarships. The authors compare the marginal revenue product (MRP) of men’s basketball players to athletic scholarship caps. The authors estimate MRPs using players’ playing statistics; information on the distribution of pro salaries; and players’ future draft status. The authors find that players’ MRPs are greater than the athletic scholarship caps for about 60% of men’s basketball players, not just the star players.

Suggested Citation

  • Erin Lane & Juan Nagel & Janet S. Netz, 2014. "Alternative Approaches to Measuring MRP," Journal of Sports Economics, , vol. 15(3), pages 237-262, June.
    • Handle: RePEc:sae:jospec:v:15:y:2014:i:3:p:237-262
    DOI: 10.1177/1527002512453144
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1527002512453144
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1527002512453144?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Zak, Thomas A & Huang, Cliff J & Siegfried, John J, 1979. "Production Efficiency: The Case of Professional Basketball," The Journal of Business, University of Chicago Press, vol. 52(3), pages 379-392, July.
    2. John E. Leonard & Joseph M. Prinzinger, 1984. "An Investigation into the Monopsonistic Market Structure of Division One NCAA Football and Its Effect on College Football Players," Eastern Economic Journal, Eastern Economic Association, vol. 10(4), pages 455-467, Oct-Dec.
    3. Lawrence Hadley & Marc Poitras & John Ruggiero & Scott Knowles, 2000. "Performance evaluation of National Football League teams," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(2), pages 63-70.
    4. Krautmann, Anthony C, 1999. "What's Wrong with Scully-Estimates of a Player's Marginal Revenue Product," Economic Inquiry, Western Economic Association International, vol. 37(2), pages 369-381, April.
    5. Brown, Robert W, 1993. "An Estimate of the Rent Generated by a Premium College Football Player," Economic Inquiry, Western Economic Association International, vol. 31(4), pages 671-684, October.
    6. Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, vol. 64(6), pages 915-930, December.
    7. J. Richard Hill & Peter A. Groothuis, 2001. "The New NBA Collective Bargaining Agreement, the Median Voter Model, and a Robin Hood Rent Redistribution," Journal of Sports Economics, , vol. 2(2), pages 131-144, May.
    8. Martin, Robert E., 2004. "Tuition discounting without tears," Economics of Education Review, Elsevier, vol. 23(2), pages 177-189, April.
    9. Robert Brown, 2011. "Research Note: Estimates of College Football Player Rents," Journal of Sports Economics, , vol. 12(2), pages 200-212, April.
    10. Hofler, Richard A. & Payne, James E., 1997. "Measuring efficiency in the National Basketball Association1," Economics Letters, Elsevier, vol. 55(2), pages 293-299, August.
    11. David J. Berri, 1999. "Who is 'most valuable'? Measuring the player's production of wins in the National Basketball Association," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 20(8), pages 411-427.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Matthew Philip Makofske, 2018. "Are you hiring Johnny Football or Johnny Doe? Uncertain labour quality and the measurement of monopsony in college football," Applied Economics, Taylor & Francis Journals, vol. 50(22), pages 2415-2430, May.
    2. Michael A. Leeds & Eva Marikova Leeds & Aaron Harris, 2018. "Rent Sharing and the Compensation of Head Coaches in Power Five College Football," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 52(2), pages 253-267, March.
    3. Peter K. Hunsberger & Seth R. Gitter, 2015. "What is a Blue Chip Recruit Worth? Estimating the Marginal Revenue Product of College Football Quarterbacks," Journal of Sports Economics, , vol. 16(6), pages 664-690, August.
    4. Allen R. Sanderson & John J. Siegfried, 2015. "The Case for Paying College Athletes," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 115-138, Winter.
    5. Craig Garthwaite & Jordan Keener & Matthew Notowidigdo & Nicole Ozminkowski, 2020. "Who Profits from Amateurism? Rent-Sharing in Modern College Sports," Working Papers 2020-117, Becker Friedman Institute for Research In Economics.
    6. Craig Garthwaite & Jordan Keener & Matthew J. Notowidigdo & Nicole F. Ozminkowski, 2020. "Who Profits From Amateurism? Rent-Sharing in Modern College Sports," NBER Working Papers 27734, National Bureau of Economic Research, Inc.
    7. Brent A. Evans & Joshua D. Pitts, 2018. "Cross-Sport Recruiting Effects in NCAA D1 Football and Basketball," Journal of Sports Economics, , vol. 19(6), pages 820-842, August.
    8. Michael A. Leeds & Ngoc Tram Nguyen Pham, 2020. "Productivity, Rents, and the Salaries of Group of Five Football Coaches," Journal of Sports Economics, , vol. 21(1), pages 3-19, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Young Hoon Lee & David Berri, 2008. "A Re‐Examination Of Production Functions And Efficiency Estimates For The National Basketball Association," Scottish Journal of Political Economy, Scottish Economic Society, vol. 55(1), pages 51-66, February.
    2. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    3. José M. Sánchez Santos & Pablo Castellanos García & Jesus A. Dopico Castro, 2006. "The production process in basketball: Empirical evidence from Spanish league," Working Papers 0611, International Association of Sports Economists;North American Association of Sports Economists.
    4. KimMarie McGoldrick & Lisa Voeks, 2005. "“We Got Game!â€," Journal of Sports Economics, , vol. 6(1), pages 5-23, February.
    5. Andrew W. Nutting, 2010. "Travel Costs in the NBA Production Function," Journal of Sports Economics, , vol. 11(5), pages 533-548, October.
    6. Boon L. Lee & Andrew C. Worthington, 2013. "A note on the ‘Linsanity’ of measuring the relative efficiency of National Basketball Association guards," Applied Economics, Taylor & Francis Journals, vol. 45(29), pages 4193-4202, October.
    7. Andrés Picazo-Tadeo & Francisco González-Gómez, 2010. "Does playing several competitions influence a team’s league performance? Evidence from Spanish professional football," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(3), pages 413-432, September.
    8. Wen-Jhan Jane & Wei-Hsin Kong & Yi-Hsiue Wang, 2010. "Individual efficiency and club performance: a panel analysis of professional baseball," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 363-372.
    9. Peter K. Hunsberger & Seth R. Gitter, 2015. "What is a Blue Chip Recruit Worth? Estimating the Marginal Revenue Product of College Football Quarterbacks," Journal of Sports Economics, , vol. 16(6), pages 664-690, August.
    10. Robert A. Baade & Victor A. Matheson, 2008. "Research Note: Assessing Household Service Losses with Joint Survival Probabilities," Journal of Forensic Economics, National Association of Forensic Economics, vol. 20(2), pages 187-192, October.
    11. I. García-Sánchez, 2007. "Efficiency and effectiveness of Spanish football teams: a three-stage-DEA approach," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 15(1), pages 21-45, March.
    12. Matthew Philip Makofske, 2018. "Are you hiring Johnny Football or Johnny Doe? Uncertain labour quality and the measurement of monopsony in college football," Applied Economics, Taylor & Francis Journals, vol. 50(22), pages 2415-2430, May.
    13. Fiona Carmichael & Dennis Thomas & Robert Ward, 2001. "Production and Efficiency in Association Football," Journal of Sports Economics, , vol. 2(3), pages 228-243, August.
    14. Benjamin Leard & Joanne M. Doyle, 2011. "The Effect of Home Advantage, Momentum, and Fighting on Winning in the National Hockey League," Journal of Sports Economics, , vol. 12(5), pages 538-560, October.
    15. Stekler, H.O. & Sendor, David & Verlander, Richard, 2010. "Issues in sports forecasting," International Journal of Forecasting, Elsevier, vol. 26(3), pages 606-621, July.
      • Herman O. Stekler & David Sendor & Richard Verlander, 2009. "Issues in Sports Forecasting," Working Papers 2009-002, The George Washington University, Department of Economics, H. O. Stekler Research Program on Forecasting.
    16. Wen-Jhan Jane, 2013. "Overpayment and Reservation Salary in the Nippon Professional Baseball League," Journal of Sports Economics, , vol. 14(6), pages 563-583, December.
    17. David Boto‐García & Carlos Varela‐Quintana & Alvaro Muñiz, 2023. "Foreign players, team production, and technical efficiency: Evidence from European soccer," Bulletin of Economic Research, Wiley Blackwell, vol. 75(4), pages 1209-1241, October.
    18. Young Hoon Lee, 2009. "Frontier Models and their Application to the Sports Industry," Working Papers 0903, Nam Duck-Woo Economic Research Institute, Sogang University (Former Research Institute for Market Economy), revised 2009.
    19. Carlos Pestana Barros & Stephanie Leach, 2006. "Analyzing the Performance of the English F.A. Premier League With an Econometric Frontier Model," Journal of Sports Economics, , vol. 7(4), pages 391-407, November.
    20. Francisco González-Gómez & Andrés J. Picazo-Tadeo, 2010. "Can We Be Satisfied With Our Football Team? Evidence From Spanish Professional Football," Journal of Sports Economics, , vol. 11(4), pages 418-442, August.

    More about this item

    Keywords

    marginal revenue product; basketball;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:15:y:2014:i:3:p:237-262. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.