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Competition in Major League Baseball: The Impact Expansion

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Author Info
Schmidt, Martin B

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Abstract

Numerous empirical studies of competition within Major League Baseball (MLB) have highlighted the recent rise in competitive balance. While most explanations for the increased competitiveness have revolved around the establishment of the amateur draft or the introduction of free agency, the present paper maintains that the movement towards increased competition occurred much earlier. In particular, it is an outgrowth of the move to expand beyond the original 16 teams. The results from estimating the time-series behaviour of competitive balance within the two leagues suggests that the movement toward greater competitive balance occurred quickly after the two leagues began expanding. Finally, rather than use the conventional standard deviation measure for competitive balance, the present paper incorporates a more traditional measure of inequity, the Gini coefficient. Copyright 2001 by Taylor and Francis Group

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics Letters.

Volume (Year): 8 (2001)
Issue (Month): 1 (January)
Pages: 21-26
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Handle: RePEc:taf:apeclt:v:8:y:2001:i:1:p:21-26

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  1. yamamura, eiji, 2006. "Team Payroll, Competitive Balance, and Team Performance in the Japan Professional Baseball League: A Study using 1993-2004 Panel Data," MPRA Paper 10836, University Library of Munich, Germany. [Downloadable!]
  2. Martin B. Schmidt, 2006. "On the evolution of competition: an application of nonlinear tests," Applied Economics, Taylor and Francis Journals, vol. 38(1), pages 1-12, January. [Downloadable!] (restricted)
  3. yamamura, eiji, 2008. "Effect of Linguistic Heterogeneity on Technology Transfer: An Economic Study of FIFA Football Rankings," MPRA Paper 10305, University Library of Munich, Germany. [Downloadable!]
  4. Martin Schmidt & David Berri, 2002. "Competitive Balance and Market Size in Major League Baseball: A Response to Baseball's Blue Ribbon Panel," Review of Industrial Organization, Springer, vol. 21(1), pages 41-54, August. [Downloadable!] (restricted)
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