Baseball success and the structure of salaries
AbstractThe 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 InfoIf 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.
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 InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 5 (1998)
Issue (Month): 5 ()
Contact details of provider:
Web page: http://www.tandfonline.com/RAEL20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Egon Franck & Stephan Nüesch, 2007.
"Wage Dispersion and Team Performance - An Empirical Panel Analysis,"
0073, University of Zurich, Institute for Strategy and Business Economics (ISU).
- Egon Franck & Stephan Nüesch, 2007. "Wage Dispersion and Team Performance - An Empirical Panel Analysis," Working Papers 0017, University of Zurich, Center for Research in Sports Administration (CRSA).
- Robert Breunig & Bronwyn Garrett-Rumba & Mathieu Jardin & Yvon Rocaboy, 2012.
"Wage dispersion and team performance: a theoretical model and evidence from baseball,"
CEPR Discussion Papers
663, Centre for Economic Policy Research, Research School of Economics, Australian National University.
- 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.
- Benoît Mahy & François Rycx & Mélanie Volral, 2011.
"Does Wage Dispersion Make All Firms Productive?,"
Working Papers CEB
11-021, ULB -- Universite Libre de Bruxelles.
- 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.
- Thierry Lallemand & Robert Plasman & François Rycx, 2005.
"La dispersion salariale stimule-t-elle la performance d'une firme?,"
ULB Institutional Repository
2013/8741, ULB -- Universite Libre de Bruxelles.
- 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.
- Thierry Lallemand & Robert Plasman & François Rycx, 2005. "La dispersion salariale stimule-t-elle la performance d'une firme?," ULB Institutional Repository 2013/7846, ULB -- Universite Libre de Bruxelles.
- 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.
- 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.
- 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.
- 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).
- 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.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.