The Call Up to the Majors


Book Description

This book explores the unique relationships between professional baseball teams and the unique ways professional baseball leagues are organized in North America with a primary focus on how proximity can and does impact consumer demand. Perhaps more than any other matter that arises in the business of baseball, proximity to other professional baseball teams is a concern that has uniquely shaped professional baseball leagues in North America. It is this particular component in how professional baseball leagues are organized that suggests building a proximity-based approach to studying the economics of minor league baseball. This book opens up new ways to study minor league baseball, specifically, and sports leagues more generally. So even as advanced technology has eliminated some of the need for fans to be in close proximity to the teams they love to follow, there is still a need to understand more completely how proximity matters can impact the way professional baseball leagues are structured and how that structure can ultimately impact the quality of the games that entertain sports fans everywhere. This book will be of interest to both sports economists and practitioners.




Frontiers in Major League Baseball


Book Description

This book focuses on the application of Data Envelopment Analysis (DEA) to Major League Baseball (MLB). DEA is a nonparametric linear programming model that is used across academic disciplines. In sports economics, authors have applied the technique primarily to assess team and/or managerial efficiency. The basis for performance analysis is economic production theory, where it is assumed that baseball can be viewed as a production process whereby inputs (player quality measures) are transformed into outputs (wins, attendance). The primary advantage that DEA has over more traditional regression based approaches is the ability to handle multiple inputs and multiple outputs. Further, the approach is nonparametric and hence, does not require a priori specification of the production function. The book develops the theory of DEA in the context of a production environment. A focal point is the assessment of technical and cost efficiency of MLB teams. It is shown that previous frontier applications that measure efficiency provide biased results given that the outcome of a game is zero-sum. If a team loses a game due to inefficiency, another team wins a lost game. A corrected frontier is presented to overcome this problem. Free agent salary arbitration is analyzed using a dual DEA model. Each free agent's contract zone is identified. The upper and lower bounds, representing the player's and team's perspective of value, respectively, are estimated. Player performance is estimated using a modified DEA model to rank order players based on multiple attributes. This model will be used to evaluate current Hall of Fame players. We provide arguments for other players who are deserving of membership. We also use our measure of performance and evaluate age-performance profilers for many ball players. Regression analysis is used to identify the age of peak performance. The method is used to evaluate some of the all-time greats. We also use the method to analyze admitted and implicated steroid users. The results clearly show that performance was enhanced. This book will provide appropriate theoretical models with methodological considerations and interesting empirical analyses and is intended to serve academics and practitioners interested in applying DEA to baseball as well as other sports or production processes. >




Handbook of Sports Economics Research


Book Description

The wealth of data available on sports makes the industry a singular laboratory for observing economic and business behavior and theory. This unique reference on sports economics research provides a detailed perspective on the current state of the discipline. Covering both team and individual sports that include tennis, golf, and motor racing, the handbook explores what we know, what we do not know, what is stable, what is changing, what is certain, and what is controversial in sports economics. The expert contributors address issues in particular sports or comparisons among sports along major topics such as revenue and costs, labor markets, market structure, market outcomes, and public policy.













The Faulty Law and Economics of the 'Baseball Rule'


Book Description

This article examines the so-called “Baseball Rule,” the legal doctrine generally immunizing professional baseball teams from liability when spectators are hit by errant balls or bats leaving the field of play. Following a recent series of high-profile fan injuries at Major League Baseball (MLB) games, this century-old legal doctrine has come under increased scrutiny, with both academic and media commentators calling for its abolition. Nevertheless, despite these criticisms, courts have almost uniformly continued to apply the Baseball Rule to spectator-injury lawsuits.This article offers two contributions to the ongoing debate surrounding the Baseball Rule. First, it provides new empirical evidence establishing that the risk of being hit by an errant ball or bat at a professional baseball game has increased considerably in recent years. Specifically, fans attending MLB games today are sitting more than twenty percent closer to the field than they were when the legal doctrine was first established. This fact, along with other changes in the way in which the game is played and presented to fans, have converged to substantially reduce the reaction time that spectators have to protect themselves from flying objects entering the stands, calling into question courts' continued reliance on the century-old rule.Second, the article makes the novel observation that courts and academic commentators have, to date, failed to reconsider the Baseball Rule in light of the emergence of the law-and-economics movement, and in particular the contributions it has offered regarding the optimal apportionment of tort liability. By subjecting the doctrine to such an economic analysis, this article finds that the host team will usually constitute the lowest-cost or best-risk avoider, thus suggesting that the legal immunity currently provided by the Baseball Rule inefficiently allocates tort liability in spectator-injury lawsuits.As a result, the article concludes by contending that future courts (or legislatures) should reject the Baseball Rule and instead hold professional baseball teams liable for spectator injuries. Specifically, it asserts that the Baseball Rule should be replaced by a strict liability regime, thereby better incentivizing teams to implement the most economically efficient level of fan protection in their stadiums.




Regulating the National Pastime


Book Description

Major League Baseball, alone among industries of its size in the United States, operates as an unregulated monopoly. This 20th-century regulatory anomaly has become known as the baseball anomaly. Major League Baseball developed into a major commercial enterprise without being subject to antitrust liability. Long after the interstate commercial character of baseball had been established and even recognized by the Supreme Court, baseball's monopoly remained free from federal regulation. Duquette explains the baseball anomaly by connecting baseball's regulatory status to the larger political environment, tracing the game's fate through four different regulatory regimes. The constellation of institutional, ideological, and political factors within each regulatory regime provides the context for the survival of the baseball anomaly. Duquette shows baseball's unregulated monopoly persists because of the confluence of institutional, ideological, and political factors which have prevented the repeal of baseball's antitrust exemption to date. However, both the institutional and ideological factors are fading fast. Baseball's owners can no longer claim special cultural significance in defense of their exemption. Nor can they credibly claim that the commissioner system approximates government regulation effectively. Both of these strategies have been discredited by the labor unrest of the 1980s and 1990s. Duquette provides a unique perspective on American regulatory politics, and by explaining a complicated story in comprehensive prose, he has given researchers, policy makers, and fans a fascinating look at the business of baseball.




The Economic Impact of Sports Facilities, Franchises, and Events


Book Description

This edited volume discusses the economic impact of sports facilities, franchises, and events on local economies. Written in honor of Robert Baade upon his retirement, the book provides a state-of-the-art of current research on the economic impact of sports, and recognizes the seminal contributions that Dr. Baade has made to this topic. The analysis of the economic impact of spectator sports is a vital public policy topic as $75 billion has been spent on stadium construction since 1990 in the US alone, with nearly $35 billion of this coming from taxpayer subsidies. True public cost of sports franchises is much higher than this as this figure excludes facilities outside the Big 5 domestic leagues (like NASCAR track, NCAA facilities, minor league baseball, and the Canadian Football Leagues), public subsidies for major events like the Super Bowl or Olympic Games, and excludes sports subsidies outside of direct stadium construction subsidies. Including contributions from many of the most notable researchers studying the economic impact of sports, topics include impacts of stadiums and franchises on local economies, labor markets, and tax collections, the effect of sports franchises on property values, and changes in the public and academic discourse on sports subsidies over time. This volume will be of interest to researchers and students of sports economics, management, public policy, and public finance.