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Rodney Fort's Sports Economics

Rodney Fort's Sports Economics. Chapter 8 The History of Player Pay. Figure 8-1 The Value of Immobilizing Talent.

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Rodney Fort's Sports Economics

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  1. Rodney Fort's Sports Economics Chapter 8The History of Player Pay

  2. Figure 8-1The Value of Immobilizing Talent Legend: In equilibrium, P = MRS = MRL and winning percents are= 1 – . The value of immobilizing talent comes from reducing alternatives and lowering the going price of talent to N. Each owner then reduces spending on talent. The reduction for the larger market owner is (P – N)* while the reduction for the smaller market owner is (P – N)* .

  3. Table 8-1Salary History of Willie Mays

  4. Table 8-2MLB’s First Crop of Free Agents *The percentage change was for 1975 and 1977, unless player had no observed 1975 salary in which case the percentage change was for 1976 and 1977.

  5. Table 8-3Average Salaries in Pro Sports Centered around Free Agency (All values in 2009 dollars)

  6. Table 8-4A-Rod’s Contract

  7. Table 8-5Standard Deviation of Winning Percent Imbalance, Pre- and Post-draft (slide 1 of 2)

  8. Table 8-5Standard Deviation of Winning Percent Imbalance, Pre- and Post-draft (slide 2 of 2) Note: Author’s calculations.

  9. Table 8-6Competitive Balance and the Reserve ClauseBefore and After Free Agency in MLB (Adjusted for Expansion)

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