Advanced Search
MyIDEAS: Login

Market size and the demand for talent in major league baseball

Contents:

Author Info

  • Anthony Krautmann
Registered author(s):

    Abstract

    In this article, we look at how revenues affect the personnel decisions of Major League Baseball (MLB) teams. It is well established that teams with the strongest demands end up with the top stars and deepest benches, thus the best chance of winning. Since a team's demand for talent is its Marginal Revenue Product, the critical test is whether large-market teams have a greater Marginal Revenue (MR). Controlling for the impact of re-distributional efforts by MLB, we find that the MR of a large-market team is about 50% larger than that of a small-market team. Furthermore, we find that re-distributive efforts have a more severe effect on small-market teams. “Are the New York Yankees a dynasty because they outsmarted everyone? No, they just outspent everyone.” Sam Smith, Chicago Tribune

    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.tandfonline.com/doi/abs/10.1080/00036840701582121
    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 and Francis Journals in its journal Applied Economics.

    Volume (Year): 41 (2009)
    Issue (Month): 25 ()
    Pages: 3267-3273

    as in new window
    Handle: RePEc:taf:applec:v:41:y:2009:i:25:p:3267-3273

    Contact details of provider:
    Web page: http://www.tandf.co.uk/journals/routledge/00036846.html

    Order Information:
    Web: http://www.tandf.co.uk/journals/subscription.asp

    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. Rockerbie, Duane W, 2012. "Exploring inter-league parity in North America: the NBA anomaly," MPRA Paper 43088, University Library of Munich, Germany.

    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:applec:v:41:y:2009:i:25:p:3267-3273

    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.