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A Hedonic Model of Player Wage Determination from the Indian Premier League Auction#

Author

Listed:
  • Liam J A Lenten

    (Department of Economics and Finance, La Trobe University)

  • Wayne Geerling

    (Department of Economics and Finance, La Trobe University)

  • László Kónya

    (Department of Economics and Finance, La Trobe University)

Abstract

A range of cross-sectional models are estimated with a view to establishing the factors that determine the valuation of professional athletes in a highly-specialised sport, with an application to crickets Indian Premier League (IPL). We distinguish between personal characteristic and playing ability factors, and with respect to the former, between ability in different forms of the sport. We find a number of interpretable variables that have explanatory power over auction values, while decomposition according to batting and bowling specialisations produces very different results depending on the use of either Test or One-Day International (ODI) variables. There is also possible evidence of inefficient bidding, insofar that overbidding was somewhat correlated with players with higher realised values.

Suggested Citation

  • Liam J A Lenten & Wayne Geerling & László Kónya, 2010. "A Hedonic Model of Player Wage Determination from the Indian Premier League Auction#," Working Papers 2010.04, School of Economics, La Trobe University.
    • Handle: RePEc:ltr:wpaper:2010.04
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    References listed on IDEAS

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    1. Vani K. Borooah & John Mangan, 2012. "Mistaking Style for Substance," Journal of Sports Economics, , vol. 13(3), pages 266-287, June.

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    More about this item

    Keywords

    Demand for Sport; Cricket; Auctions; Cross-section Models; Labour Demand EDIRC Provider-Institution: RePEc:edi:smlatau;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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