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Uncertainty by regulation: Rottenberg's invariance principle
Journal article   Peer reviewed

Uncertainty by regulation: Rottenberg's invariance principle

Rodney Fort, Joel Maxcy and Mark Diehl
Research in economics, v 70(3), pp 454-467
01 Sep 2016

Abstract

Business & Economics Economics Social Sciences
What has come to be called Rottenberg's (1956) "Invariance Principle" states that the same talent allocation would result in a profit-maximizing league with or without interventions often claimed in the name of furthering competitive balance (e.g., a player draft or a reservation system that granted club owners complete control of the player's labor market). While the stuff of undergraduate classes on sports economics, the invariance principle goes virtually ignored in policy. We provide the basic modern theory of the invariance principle, review the empirical work on the topic, and apply meta-analysis thinking to derive future research ideas on this fundamental sports economics principle. (C) 2016 University of Venice. Published by Elsevier Ltd. All rights reserved.

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Collaboration types
Domestic collaboration
Web of Science research areas
Economics
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