Document Type
Article
Abstract
With the recent $325 million dollar contract sign by Giancarlo Stanton, baseball contracts have reached a new frontier. Baseball contracts have increased in value year after year since free agency began in 1976. Are these contracts efficient? A new approach to measuring the efficiency of baseball contracts makes use of the wins above replacement statistic. That statistic reflects the value and cost of a player compared to a replacement. I conclude that large long-term contracts are efficient right now, but with many contracts not yet finished, and players past their "prime," these contracts may become extremely inefficient.
Publication Date
Spring 2016
Journal Title
Major Themes in Economics
Volume
18
Issue
1
First Page
35
Last Page
49
Copyright
©2016 by Major Themes in Economics
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Language
en
File Format
application/pdf
Recommended Citation
Oswald, Jacob
(2016)
"The Efficiency of the Major League Baseball Free-Agent Market,"
Major Themes in Economics, 18, 35-49.
Available at:
https://scholarworks.uni.edu/mtie/vol18/iss1/5