Free Agency, Long-Term Contracts and Compensation in Major League Baseball: Estimates from Panel Data
AbstractUsing longitudinal data for major league baseball players, this paper estimates the effects of eligibility for free agency or arbitration on compensation and contract duration. Becaus e eligibility is based on experience and better players are kept longe r, a fixed effects approach is used. Arbitration and free agency eligibility both raised annual compensation; however, only free agen cy raised contract duration. The free agency findings are consistent wi th Nash bargaining; however, additionally considering the arbitration results suggests the "winner's curse": duration rises only when a team might lose a player. The auction market is thus avoided. Copyright 1993 by MIT Press.
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.
Bibliographic InfoArticle provided by MIT Press in its journal Review of Economics & Statistics.
Volume (Year): 75 (1993)
Issue (Month): 1 (February)
Contact details of provider:
Web page: http://mitpress.mit.edu/journals/
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Koop G., 2002.
"Comparing the Performance of Baseball Players: A Multiple-Output Approach,"
Journal of the American Statistical Association,
American Statistical Association, vol. 97, pages 710-720, September.
- Gary Koop, 2004. "Comparing the Performance of Baseball Players: A Multiple Output Approach," ESE Discussion Papers 72, Edinburgh School of Economics, University of Edinburgh.
- Turner, Chad & Hakes, Jahn, 2007.
"Pay, productivity and aging in Major League Baseball,"
4326, University Library of Munich, Germany.
- Jahn Hakes & Chad Turner, 2011. "Pay, productivity and aging in Major League Baseball," Journal of Productivity Analysis, Springer, vol. 35(1), pages 61-74, February.
- Eberhard Feess & Bernd Frick & Gerd Muehlheusser, 2004.
"Legal Restrictions on Buyout Fees: Theory and Evidence from German Soccer,"
dp0411, Universitaet Bern, Departement Volkswirtschaft.
- Feess, Eberhard & Frick, Bernd & Muehlheusser, Gerd, 2004. "Legal Restrictions on Buyout Fees: Theory and Evidence from German Soccer," IZA Discussion Papers 1180, Institute for the Study of Labor (IZA).
- Turner, Chad & Hakes, Jahn Karl, 2007. "The Collective Bargaining Effects of NBA Player Productivity Dynamics," MPRA Paper 5058, University Library of Munich, Germany.
- Jahn K. Hakes & Raymond D. Sauer, 2006. "An Economic Evaluation of the Moneyball Hypothesis," Journal of Economic Perspectives, American Economic Association, vol. 20(3), pages 173-186, Summer.
- Matthew Clayton & David Yermack, 1999. "Major League Baseball Player Contracts: An Investigation of the Empirical Properties of Real Options," New York University, Leonard N. Stern School Finance Department Working Paper Seires 99-051, New York University, Leonard N. Stern School of Business-.
- Hamermesh, Daniel S. & Pfann, Gerard A., 2009.
"Markets for Reputation: Evidence on Quality and Quantity in Academe,"
IZA Discussion Papers
4610, Institute for the Study of Labor (IZA).
- Daniel S. Hamermesh & Gerard A. Pfann, 2009. "Markets for Reputation: Evidence on Quality and Quantity in Academe," NBER Working Papers 15527, National Bureau of Economic Research, Inc.
- Hamermesh, Daniel S. & Pfann, Gerard Antonie, 2009. "Markets for Reputation: Evidence on Quality and Quantity in Academe," CEPR Discussion Papers 7603, C.E.P.R. Discussion Papers.
- Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
- Lawrence M. Kahn, 2000. "The Sports Business as a Labor Market Laboratory," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 75-94, Summer.
- Joel Maxcy, 2004. "Motivating long-term employment contracts: risk management in major league baseball," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 109-120.
- Jahn K. Hakes & Chad Turner, 2008. "Long-Term Contracts in Major League Baseball," Working Papers 0831, International Association of Sports Economists & North American Association of Sports Economists.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Karie Kirkpatrick).
If references are entirely missing, you can add them using this form.