Arbitrator Bias and Self-Interest: Lessons from the Baseball Labor Market
AbstractTheir desire for enduring employment is commonly assumed to induce arbitrators to make fair awards. We find, however, that in major league baseball's unique institutional setting, self-interested behavior by arbitrators has led to bias against players and preservation of monopsony rents for team owners. We apply a standard model of arbitrator behavior to all 391 arbitrated cases in baseball since 1979. Under conditions that should lead to an even split in awards to teams and players, probit analysis indicates that arbitrators favor teams 61 percent of the time. Furthermore, bias against African-American and Latin-born players is even more pronounced.
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 Transaction Publishers in its journal Journal of Labor Research.
Volume (Year): 26 (2005)
Issue (Month): 2 (January)
Contact details of provider:
Web page: http://transactionpub.metapress.com/link.asp?target=journal&id=110581
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- John D. Burger & Stephen J.K. Walters, 2006.
"Testing Fair Wage Theory,"
0623, International Association of Sports Economists & North American Association of Sports Economists.
- Budd, John W. & Sojourner, Aaron J. & Jung, Jaewoo, 2014. "Are Voluntary Agreements Better? Evidence from Baseball Arbitration," IZA Discussion Papers 8098, Institute for the Study of Labor (IZA).
- John D. Burger & Richard D. Grayson & Stephen J.K. Walters, 2006. "Initial Public Offerings of Ballplayers," Working Papers 0624, 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: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.