I examine the connection between Major League Baseball (MLB) team payrolls and team success. Previous studies attempted to quantify the effect that increased spending has on success. In 2000 MLB commissioned a study of competitive balance. The Blue Ribbon Panel concluded that MLB had lost its competitive balance and measures were needed to save “America’s pastime.” Since 2000 new data has become available. I have used the new data to update the Blue Ribbon Panel’s study. I show that the dominance of the high-spending teams in the 1990s did not continue, and that competitive balance exists in MLB.
Major Themes in Economics
©2010 by Major Themes in Economics
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"Competitive Balance and Team Payroll: The Case of Major League Baseball,"
Major Themes in Economics, 12, 71-88.
Available at: https://scholarworks.uni.edu/mtie/vol12/iss1/6