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Pay, Performance, and Competitive Balance in the National Hockey League

Author

Listed:
  • David H. Richardson

    () (Department of Economics, St. Lawrence University)

Abstract

This paper uses data from the National Hockey League to address several issues that arise in the economic analysis of a professional sports league. Data on players' salaries reveal substantial growth in average salary and a steady increase in the dispersion of salaries between 1989-90 and 1995-96. Marginal revenue products, computed for 520 players in the 1993-94 season, are used to test hypotheses about the relationship between pay and performance and to measure the effect of free agency. Several measures of competitive balance are employed to investigate the proposition that team playing strength is invariant with respect to institutional changes.

Suggested Citation

  • David H. Richardson, 2000. "Pay, Performance, and Competitive Balance in the National Hockey League," Eastern Economic Journal, Eastern Economic Association, vol. 26(4), pages 393-417, Fall.
  • Handle: RePEc:eej:eeconj:v:26:y:2000:i:4:p:393-417
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume26/V26N4P393_417.pdf
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    Citations

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    Cited by:

    1. Fort, Rodney & Maxcy, Joel & Diehl, Mark, 2016. "Uncertainty by regulation: Rottenberg׳s invariance principle," Research in Economics, Elsevier, vol. 70(3), pages 454-467.
    2. Richard J. Cebula, 2009. "Teaching How Private Enterprise Works Using Professional Sports: A Brief Note on the Case of Individual NHL Players' Salaries," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 24(Spring 20), pages 165-174.
    3. de Saá Guerra, Y. & Martín González, J.M. & Sarmiento Montesdeoca, S. & Rodríguez Ruiz, D. & García-Rodríguez, A. & García-Manso, J.M., 2012. "A model for competitiveness level analysis in sports competitions: Application to basketball," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(10), pages 2997-3004.
    4. Tony Caporale & Trevor Collier, 2015. "Are We Getting Better or Are They Getting Worse? Draft Position, Strength of Schedule, and Competitive Balance in the National Football League," Journal of Labor Research, Springer, vol. 36(3), pages 291-300, September.

    More about this item

    Keywords

    Professionals; Sports;

    JEL classification:

    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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