Journal article
Progressive Revenue Sharing in Major League Baseball: The Effect on Player Transfers and Talent Distribution
Review of industrial organization, v 35(3), pp 275-297
01 Nov 2009
Abstract
Major League Baseball’s system of sharing revenue between clubs was altered significantly in 1997. The arrangement progressively redistributes income from the highest toward the lowest revenue-generating clubs. The purpose of the new method was to alleviate growing disparity in revenue generation. However, under the progressive system the lowest revenue producing clubs bear the highest marginal tax rates, and theoretically problems of competitive imbalance may be amplified. Changes in talent distribution are observed by analyzing player mobility; an empirical model of player transfers is developed and tested. Confirmation is obtained that low revenue clubs acted on increased incentives to divest talent.
Metrics
Details
- Title
- Progressive Revenue Sharing in Major League Baseball: The Effect on Player Transfers and Talent Distribution
- Creators
- Joel G. Maxcy - University of Georgia
- Publication Details
- Review of industrial organization, v 35(3), pp 275-297
- Publisher
- Springer US
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Sport Management (Center for Sport Management)
- Web of Science ID
- WOS:000271504100004
- Scopus ID
- 2-s2.0-70549093053
- Other Identifier
- 991021881502304721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Web of Science research areas
- Economics
- Management