IDEAS home Printed from https://ideas.repec.org/p/ltr/wpaper/2010.04.html
   My bibliography  Save this paper

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
    as

    Download full text from publisher

    File URL: http://www.latrobe.edu.au/__data/assets/pdf_file/0015/130920/2010.04.pdf
    File Function: First version, 2010.04.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Liam J. A. Lenten, 2008. "Is The Decline In The Frequency Of Draws In Test Match Cricket Detrimental To The Long Form Of The Game?," Economic Papers, The Economic Society of Australia, vol. 27(4), pages 364-380, December.
    2. Bodvarsson, Orn B & Brastow, Raymond T, 1998. "Do Employers Pay for Consistent Performance?: Evidence from the NBA," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 145-160, January.
    3. Wladimir Andreff & Stefan Szymanski (ed.), 2006. "Handbook on the Economics of Sport," Books, Edward Elgar Publishing, number 3274.
    4. Conor Parsons & Ian Smith, 2008. "The Price of Thoroughbred Yearlings in Britain," Journal of Sports Economics, , vol. 9(1), pages 43-66, February.
    5. John Goddard & John O. S. Wilson, 2009. "Racial discrimination in English professional football: evidence from an empirical analysis of players' career progression," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(2), pages 295-316, March.
    6. Wladimir Andreff & Stefan Szymanski, 2006. "Handbook on the Economics of Sport," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00270122, HAL.
    7. Robert Brooks & Robert Faff & David Sokulsky, 2002. "An ordered response model of test cricket performance," Applied Economics, Taylor & Francis Journals, vol. 34(18), pages 2353-2365.
    8. Peter Hans Matthews & Paul Sommers & Francisco Peschiera, 2007. "Incentives and superstars on the LPGA Tour," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 87-94.
    9. Mark Foley & Fred Smith, 2007. "Consumer discrimination in professional sports: new evidence from major league baseball," Applied Economics Letters, Taylor & Francis Journals, vol. 14(13), pages 951-955.
    10. Ehrenberg, Ronald G & Bognanno, Michael L, 1990. "Do Tournaments Have Incentive Effects?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1307-1324, December.
    11. Mita Bhattacharya & Russell Smyth, 2003. "The Game is Not the Same: The Demand for Test Match Cricket in Australia," Australian Economic Papers, Wiley Blackwell, vol. 42(1), pages 77-90, March.
    12. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    13. Kanazawa, Mark T & Funk, Jonas P, 2001. "Racial Discrimination in Professional Basketball: Evidence from Nielsen Ratings," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 599-608, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

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

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lenten, Liam J.A. & Geerling, Wayne & Kónya, László, 2012. "A hedonic model of player wage determination from the Indian Premier League auction: Further evidence," Sport Management Review, Elsevier, vol. 15(1), pages 60-71.
    2. David J. Berri & Rob Simmons, 2009. "Race and the Evaluation of Signal Callers in the National Football League," Journal of Sports Economics, , vol. 10(1), pages 23-43, February.
    3. repec:lan:wpaper:3964 is not listed on IDEAS
    4. Pamela Wicker & Christoph Breuer, 2015. "How the Economic and Financial Situation of the Community Affects Sport Clubs’ Resources: Evidence from Multi-Level Models," IJFS, MDPI, vol. 3(1), pages 1-18, February.
    5. repec:lan:wpaper:3679 is not listed on IDEAS
    6. John K. Wilson & Richard Pomfret, 2014. "Public Policy and Professional Sports," Books, Edward Elgar Publishing, number 15381.
    7. Rinne, Ulf & Sonnabend, Hendrik & Wolters, Leonie, 2023. "Customer Discrimination and Ethnic Team Composition," IZA Discussion Papers 16315, Institute of Labor Economics (IZA).
    8. repec:lan:wpaper:3571 is not listed on IDEAS
    9. Rappai Gábor & Fűrész Diána Ivett, 2018. "Handling heteroskedasticity in labour demand functions of athletes," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 4(2), pages 47-56, November.
    10. Dimant, Eugen & Deutscher, Christian, 2014. "The Economics of Corruption in Sports – The Special Case of Doping," MPRA Paper 60566, University Library of Munich, Germany.
    11. John Goddard & John O. S. Wilson, 2009. "Racial discrimination in English professional football: evidence from an empirical analysis of players' career progression," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(2), pages 295-316, March.
    12. Mara Konjer & Henk Erik Meier & Katrin Wedeking, 2017. "Consumer Demand for Telecasts of Tennis Matches in Germany," Journal of Sports Economics, , vol. 18(4), pages 351-375, May.
    13. César Rodríguez & Levi Pérez & Víctor Puente & Plácido Rodríguez, 2015. "The Determinants of Television Audience for Professional Cycling," Journal of Sports Economics, , vol. 16(1), pages 26-58, January.
    14. Dominik Schreyer, 2019. "Football spectator no-show behaviour in the German Bundesliga," Applied Economics, Taylor & Francis Journals, vol. 51(45), pages 4882-4901, September.
    15. Jean-Baptiste Dherbecourt & Bastien Drut, 2009. "Who will go down this year ? The Determinants of Promotion and Relegation in European Soccer Leagues," Working Papers hal-04140848, HAL.
    16. Ian Gregory‐Smith, 2021. "Wages And Labor Productivity: Evidence From Injuries In The National Football League," Economic Inquiry, Western Economic Association International, vol. 59(2), pages 829-847, April.
    17. Jacques Fontanel, 2010. "Les fondements géopolitiques du sport," Post-Print hal-02503423, HAL.
    18. Geoffrey N Tuck & Athol R Whitten, 2013. "Lead Us Not into Tanktation: A Simulation Modelling Approach to Gain Insights into Incentives for Sporting Teams to Tank," PLOS ONE, Public Library of Science, vol. 8(11), pages 1-10, November.
    19. Jye-Shyan Wang & Wen-Jhan Jane & Yu-Hung Cheng & Pei-Hsin Fang, 2021. "Does fan discrimination exist? Mixed-method investigation of customer discrimination in Chinese professional baseball league," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 477-496, September.
    20. Dorian Owen, 2014. "Measurement of competitive balance and uncertainty of outcome," Chapters, in: John Goddard & Peter Sloane (ed.), Handbook on the Economics of Professional Football, chapter 3, pages 41-59, Edward Elgar Publishing.
    21. Jaret Treber & Lawrence Mulcahy & Manjul Bhusal Sharma, 2018. "Empty Seats or Empty Threats? Examining the Effects of the 1994-1995 and 2004-2005 Lockouts on Attendance and Revenue in the National Hockey League," Journal of Sports Economics, , vol. 19(5), pages 677-695, June.
    22. Klaassen, F.J.G.M. & Magnus, J.R., 2006. "Are Economic Agents Successful Optimizers? An Analysis Through Strategy in Tennis," Other publications TiSEM 73e12d86-8fe4-4a87-9181-7, Tilburg University, School of Economics and Management.
    23. Sebastian Mãdãlin MUNTEANU, 2015. "Corporate Support for Sport and Organisational Performance. Case Study for Companies in Romania," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(1), pages 101-111, March.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ltr:wpaper:2010.04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stephen Scoglio (email available below). General contact details of provider: https://edirc.repec.org/data/sblatau.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.