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Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach

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  • Leo Kahane

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Abstract

This paper studies the production process in the National Hockey League (NHL) and attempts to identify the sources of production inefficiency, including potential inefficiencies associated with preferences for, or against French-Canadians. Employing the method of stochastic frontier estimation, it is shown that production inefficiencies are prevalent in the NHL and can, in part, be traced to differences in coaching ability, team ownership, local sports competition, and management experience. In addition, it is found that teams with unusually high (or low) numbers of French-Canadian players tended to be less efficient, implying that discriminating hiring practices are costly. Copyright Springer 2005

Suggested Citation

  • Leo Kahane, 2005. "Production Efficiency and Discriminatory Hiring Practices in the National Hockey League: A Stochastic Frontier Approach," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 27(1), pages 47-71, August.
  • Handle: RePEc:kap:revind:v:27:y:2005:i:1:p:47-71
    DOI: 10.1007/s11151-005-4400-4
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    References listed on IDEAS

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    1. Richard A. Hofler & James E. Payne, 2006. "Efficiency in the National Basketball Association: a stochastic frontier approach with panel data," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 27(4), pages 279-285.
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    Cited by:

    1. Carlos Pestana Barros & Eduardo Couto & Antonio Samagaio, 2014. "Management ability, strategy, tactics and team performance," Chapters,in: Handbook on the Economics of Professional Football, chapter 11, pages 166-188 Edward Elgar Publishing.
    2. Miguel Jara & Dimitri Paolini & Juan Dios Tena Horrillo, 2015. "Management Efficiency in Football: An Empirical Analysis of Two Extreme Cases," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 36(5), pages 286-298, July.
    3. Carlos Pestana Barros & Stephanie Leach, 2006. "Performance evaluation of the English Premier Football League with data envelopment analysis," Applied Economics, Taylor & Francis Journals, vol. 38(12), pages 1449-1458.
    4. Leo Kahane & Neil Longley & Robert Simmons, 2013. "The Effects of Coworker Heterogeneity on Firm-Level Output: Assessing the Impacts of Cultural and Language Diversity in the National Hockey League," The Review of Economics and Statistics, MIT Press, vol. 95(1), pages 302-314, March.
    5. Mario Lackner, 2010. "And most of us go Pro in something other than Sports - Hiring Preferences and their Effect on the Labor Market for Collegiate Football Players," Economics working papers 2010-10, Department of Economics, Johannes Kepler University Linz, Austria.
    6. Bridgewater, Sue & Kahn, Lawrence M. & Goodall, Amanda H., 2009. "Substitution between Managers and Subordinates: Evidence from British Football," IZA Discussion Papers 4589, Institute for the Study of Labor (IZA).
    7. Ozmen M. Utku, 2012. "Foreign Player Quota, Experience and Efficiency of Basketball Players," Journal of Quantitative Analysis in Sports, De Gruyter, vol. 8(1), pages 1-18, March.
    8. Bridgewater, Sue & Kahn, Lawrence M. & Goodall, Amanda H., 2011. "Substitution and complementarity between managers and subordinates: Evidence from British football," Labour Economics, Elsevier, vol. 18(3), pages 275-286, June.
    9. Bernd Frick & Robert Simmons, 2008. "The impact of managerial quality on organizational performance: evidence from German soccer," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(7), pages 593-600.
    10. Young Hoon Lee, 2010. "The Effects of Management Practices on Productivity: Evidence from Baseball Team Production," Working Papers 1005, Research Institute for Market Economy, Sogang University, revised 2010.
    11. Frick, Bernd & Simmons, Robert, 2006. "Impact of Managerial Quality on Organizational Performance. Evidence from German Soccer," Efficiency Series Papers 2006/05, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    12. repec:bla:coecpo:v:36:y:2018:i:1:p:200-214 is not listed on IDEAS
    13. Hentschel, Sandra & Muehlheusser, Gerd & Sliwka, Dirk, 2014. "The Contribution of Managers to Organizational Success: Evidence from German Soccer," IZA Discussion Papers 8560, Institute for the Study of Labor (IZA).
    14. Francisco González Gómez & Andrés J. Picazo Tadeo, 2008. "Can we be satisfied with our football team? Evidence from spanish professional football," ThE Papers 08/11, Department of Economic Theory and Economic History of the University of Granada..
    15. Barros, Carlos Pestana & Assaf, A.George & de Araujo, Ari Francisco, 2011. "Cost performance of Brazilian soccer clubs: A Bayesian varying efficiency distribution model," Economic Modelling, Elsevier, vol. 28(6), pages 2730-2735.
    16. Andrés Picazo-Tadeo & Francisco González-Gómez, 2010. "Does playing several competitions influence a team’s league performance? Evidence from Spanish professional football," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(3), pages 413-432, September.
    17. Del Corral, Julio, 2012. "Eficiencia en el deporte: Entrenadores en la Primera División del fútbol español 2009-2011/Efficiency in Sports: Coaches in the Spanish Football First Division 2009-2011," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 545-564, Agosto.
    18. Young Hoon Lee, 2009. "Frontier Models and their Application to the Sports Industry," Working Papers 0903, Research Institute for Market Economy, Sogang University, revised 2009.
    19. Philippe Cyrenne, 2014. "Salary Inequality, Team Success and the Superstar Effect," Departmental Working Papers 2014-02, The University of Winnipeg, Department of Economics.
    20. Carlos Pestana Barros & Julio del Corral & Pedro Garcia-del-Barrio, 2008. "Identification of Segments of Soccer Clubs in the Spanish League First Division With a Latent Class Model," Journal of Sports Economics, , vol. 9(5), pages 451-469, October.
    21. Wen-Jhan Jane & Wei-Hsin Kong & Yi-Hsiue Wang, 2010. "Individual efficiency and club performance: a panel analysis of professional baseball," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 31(5), pages 363-372.

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