Advanced Search
MyIDEAS: Login to save this article or follow this journal

Baseball success and the structure of salaries

Contents:

Author Info

  • Donald Richards
  • Robert Guell

Abstract

The purpose of this research is to examine some competing assumptions regarding the hiring behaviour of major league baseball clubs. One hypothesis is that owners and general managers of teams enter the free agent market with a view to attracting the best talent available in order to win games. We might refer to this as the 'win games' strategy. A potentially alternative view is that they compete in this market for marquee players who will attract paying customers to the ball park. We can refer to this as the 'fannies-in-the-seats', or revenue, strategy. While these hypotheses are not necessarily inconsistent, we can imagine that for some teams, at some times, they are alternative approaches to hiring behaviour. A team committed to the 'win games' strategy may attempt to spread its resources in order to hire as many good players as possible without necessarily hiring elite players. A team committed to the revenue strategy may be content to surround a superstar with second rate talent. In order to test these hypotheses we intend to specify estimable models that relate, alternatively, team attendance, winning percentage and division, pennant and world championships to, among other relevant explanatory variables, its salary structure.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/758524403&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 5 (1998)
Issue (Month): 5 ()
Pages: 291-296

as in new window
Handle: RePEc:taf:apeclt:v:5:y:1998:i:5:p:291-296

Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20

Order Information:
Web: http://www.tandfonline.com/pricing/journal/RAEL20

Related research

Keywords:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

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

Cited by:
  1. Annala, Christopher N. & Winfree, Jason, 2011. "Salary distribution and team performance in Major League Baseball," Sport Management Review, Elsevier, vol. 14(2), pages 167-175, May.
  2. Benoît Mahy & François Rycx & Mélanie Volral, 2011. "Does Wage Dispersion Make All Firms Productive?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 58(4), pages 455-489, 09.
  3. Robert Breunig & Bronwyn Garrett-Rumba & Mathieu Jardin & Yvon Rocaboy, 2014. "Wage dispersion and team performance: a theoretical model and evidence from baseball," Applied Economics, Taylor & Francis Journals, vol. 46(3), pages 271-281, January.
  4. Thierry Lallemand & Robert Plasman & François Rycx, 2005. "La dispersion salariale stimule-t-elle la performance d'une firme ?," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 63-70.
  5. Rodney J. Paul & Andrew P. Weinbach, 2011. "Minor League Baseball Attendance in the Pacific Northwest: A Study of the Effects of Winning, Scoring, Demographics and Promotions in the Northwest and Pioneer Baseball Leagues," Ekonomika a Management, University of Economics, Prague, vol. 2011(2).
  6. Egon Franck & Stephan Nüesch, 2007. "Wage Dispersion and Team Performance - An Empirical Panel Analysis," Working Papers 0073, University of Zurich, Institute for Strategy and Business Economics (ISU).
  7. Tyler Anthony & Tim Kahn & Briana Madison & Rodney Paul & Andrew Weinbach, 2014. "Similarities in fan preferences for minor-league baseball across the American Southeast," Journal of Economics and Finance, Springer, vol. 38(1), pages 150-163, January.
  8. Nils Braakmann, 2008. "Intra-firm wage inequality and firm performance – First evidence from German linked employer-employee-data," Working Paper Series in Economics 77, University of Lüneburg, Institute of Economics.
  9. Yamamura, Eiji, 2010. "Wage disparity and team performance in the process of industry development: Evidence from Japan’s professional football league," MPRA Paper 27363, University Library of Munich, Germany.
  10. Rodney J. Paul & Andrew P. Weinbach, 2013. "The Yankee Effect in Minor League Baseball," New York Economic Review, New York State Economics Association (NYSEA), vol. 44(1), pages 32-42.
  11. Takuma Kamada & Hajime Katayama, 2014. "Team performance and within-team salary disparity: an analysis of nippon professional baseball," Economics Bulletin, AccessEcon, vol. 34(1), pages 144-151.
  12. Rodney J. Paul & Andrew P. Weinbach & Peter C. Melvin, 2004. "The Yankees Effect: The Impact of Interleague Play And The Unbalanced Schedule On Major League Baseball Attendance," New York Economic Review, New York State Economics Association (NYSEA), vol. 35(1), pages 3-15.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:taf:apeclt:v:5:y:1998:i:5:p:291-296. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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