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The NBA and the influx of international basketball players

Author

Listed:
  • Erick Eschker
  • Stephen Perez
  • Mark Siegler

Abstract

The determinants of salaries for professional athletes in the National Basketball Association (NBA) are examined to investigate how international athletes have fared relative to athletes trained in the United States. It is found that international basketball players were paid a large premium above other players of similar skills and characteristics for the 1996-97 and 1997-98 seasons, after which the premium disappeared. This temporary premium is likely attributable to a 'winner's curse' experienced by NBA teams before investing significant resources in scouting and evaluating international players.

Suggested Citation

  • Erick Eschker & Stephen Perez & Mark Siegler, 2004. "The NBA and the influx of international basketball players," Applied Economics, Taylor & Francis Journals, vol. 36(10), pages 1009-1020.
    • Handle: RePEc:taf:applec:v:36:y:2004:i:10:p:1009-1020
    DOI: 10.1080/0003684042000246713
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    References listed on IDEAS

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    1. Eleanor Brown & Richard Spiro & Diane Keenan, 1991. "Wage and Nonwage Discrimination in Professional Basketball: Do Fans Affect It?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 50(3), pages 333-345, July.
    2. Kahn, Lawrence M & Sherer, Peter D, 1988. "Racial Differences in Professional Basketball Players' Compensation," Journal of Labor Economics, University of Chicago Press, vol. 6(1), pages 40-61, January.
    3. 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.
    4. Mark Gius & Donn Johnson, 1998. "An empirical investigation of wage discrimination in professional basketball," Applied Economics Letters, Taylor & Francis Journals, vol. 5(11), pages 703-705.
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