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Thanks for the memories: baseball veterans' end-of-career salaries

Listed author(s):
  • Ira Horowitz

    (The City University of Hong Kong, Kowloon, Hong Kong and The University of Florida, USA)

  • Christopher Zappe

    (Bucknell University, Lewisburg, PA, USA)

Registered author(s):

    It is well-established that a baseball player's salary is based on his performance, experience, star status, bargaining power, mobility and his team's ability to pay. This paper focuses on veteran players who are on the brink of retirement and on the determinants of their salaries. It is found that a veteran's end-of-career peak salary depends upon how his career performance, that his most recent performance is irrelevant unless he has spent his entire career with one team, and that the average veteran's salary peaks after 9 years in the Majors. A corollary inference is that general managers recognize and reward player performance over the long haul in comparison with others who have played at that player's principal position, and with a nod to how history will evaluate that player. © 1998 John Wiley & Sons, Ltd.

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    Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

    Volume (Year): 19 (1998)
    Issue (Month): 6 ()
    Pages: 377-382

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    Handle: RePEc:wly:mgtdec:v:19:y:1998:i:6:p:377-382
    DOI: 10.1002/(SICI)1099-1468(199809)19:6<377::AID-MDE905>3.0.CO;2-K
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