Rockerbie, Duane W (2010): Marginal revenue product and salaries: Moneyball redux.
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Scully (1974) used a two equation regression model to estimate a baseball player’s salary to compare to the actual salary the player earned in order to determine if a player is paid his net marginal revenue product. We replicate the spirit of that paper, but introduce several useful innovations to estimate net marginal revenue products for a large sample of free-agent baseball players. Our results suggest that the highest paid free agents are overpaid, while all other free agents are underpaid or paid appropriately. We found no evidence for the notion that some clubs may be more adept at finding “bargain” free agents.
|Item Type:||MPRA Paper|
|Original Title:||Marginal revenue product and salaries: Moneyball redux|
|Keywords:||net marginal revenue product; free agents; baseball|
|Subjects:||J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports; Gambling; Recreation; Tourism
|Depositing User:||Duane Rockerbie|
|Date Deposited:||16. Mar 2010 01:22|
|Last Modified:||12. Feb 2013 09:52|
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