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

  • David H. Richardson

    ()

    (Department of Economics, St. Lawrence University)

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    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.

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    File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume26/V26N4P393_417.pdf
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    Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

    Volume (Year): 26 (2000)
    Issue (Month): 4 (Fall)
    Pages: 393-417

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    Handle: RePEc:eej:eeconj:v:26:y:2000:i:4:p:393-417
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