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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

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

Language

EN

File Format

application/pdf

Included in

Economics Commons

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