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Are sports teams multiproduct firms?

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  • Kenneth Stewart
  • J. Jones

Abstract

The appropriate conception of team outputs is investigated by estimating a two-output factor demand system for baseball teams, relative to which single-output models are rejected. There is, however, some empirical support for output separability, suggesting that team outputs may sometimes be adequately treated as a production aggregate.
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Suggested Citation

  • Kenneth Stewart & J. Jones, 2010. "Are sports teams multiproduct firms?," Empirical Economics, Springer, vol. 39(2), pages 487-514, October.
    • Handle: RePEc:spr:empeco:v:39:y:2010:i:2:p:487-514
    DOI: 10.1007/s00181-009-0315-5
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    References listed on IDEAS

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    1. Walter C. Neale, 1964. "The Peculiar Economics of Professional Sports," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 78(1), pages 1-14.
    2. William A. Barnett & Michael Wolfe, 2004. "Semi-nonparametric Bayesian Estimation of the Asymptotically Ideal Production Model1," Contributions to Economic Analysis, in: Functional Structure and Approximation in Econometrics, pages 303-349, Emerald Group Publishing Limited.
    3. J. C. H. Jones, 1969. "The Economics of the National Hockey League," Canadian Journal of Economics, Canadian Economics Association, vol. 2(1), pages 1-20, February.
    4. Stewart, Kenneth G & Jones, J C H, 1998. "Hedonics and Demand Analysis: The Implicit Demand for Player Attributes," Economic Inquiry, Western Economic Association International, vol. 36(2), pages 192-202, April.
    5. Craig A. Depken Ii & Darren Grant, 2011. "Multiproduct Pricing In Major League Baseball: A Principal Components Analysis," Economic Inquiry, Western Economic Association International, vol. 49(2), pages 474-488, April.
    6. Scully, Gerald W, 1974. "Pay and Performance in Major League Baseball," American Economic Review, American Economic Association, vol. 64(6), pages 915-930, December.
    7. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    8. Diewert, Walter E & Wales, Terence J, 1987. "Flexible Functional Forms and Global Curvature Conditions," Econometrica, Econometric Society, vol. 55(1), pages 43-68, January.
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    10. John Goddard & Peter J. Sloane, 2005. "Economics of sport," Chapters, in: Simon W. Bowmaker (ed.), Economics Uncut, chapter 12, Edward Elgar Publishing.
    11. George C. Davis & C. Richard Shumway, 1996. "To Tell the Truth about Interpreting the Morishima Elasticity of Substitution," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 44(2), pages 173-182, July.
    12. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    13. Hall, Robert E, 1973. "The Specification of Technology with Several Kinds of Output," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 878-892, July-Aug..
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    15. Donald G. Ferguson & J. C. H. Jones & Kenneth G. Stewart, 2000. "Competition Within A Cartel: League Conduct And Team Conduct In The Market For Baseball Player Services," The Review of Economics and Statistics, MIT Press, vol. 82(3), pages 422-430, August.
    16. Rosen, Sherwin, 1981. "The Economics of Superstars," American Economic Review, American Economic Association, vol. 71(5), pages 845-858, December.
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    Cited by:

    1. Yazid Dissou & Reza Ghazal, 2010. "Energy Substitutability in Canadian Manufacturing Econometric Estimation with Bootstrap Confidence Intervals," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 121-148.
    2. Kenneth Stewart, 2009. "Non-jointness and scope economies in the multiproduct symmetric generalized McFadden cost function," Journal of Productivity Analysis, Springer, vol. 32(3), pages 161-171, December.
    3. Daniel H. Weinberg, 2016. "Talent Recruitment and Firm Performance," Journal of Sports Economics, , vol. 17(8), pages 832-862, December.

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    More about this item

    Keywords

    Sports economics; Hedonic price; Multi-output production; Symmetric generalized McFadden;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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