David Surdam

The Coase Theorem and Player Movement in Major League Baseball

The Coase theorem suggests that under certain conditions, the distribution of player talent should be similar before and after free agency. Previous attempts to test the theorys applicability to major league baseball were either examinations of win-loss distributions or comparisons of player movements before and after free agency. These approaches have significant drawbacks. Did the same teams sport winning records over an extended period before and after free agency? Franchise relocations and implementation of a draft of amateur players should have also affected player movement patterns and distributions of win-loss records. American League teams had changes in their win-loss records that do not fully correspond to the theorys predictions, raising questions of what transaction costs might have impeded transferring players. Teams in smaller towns tended to lose talent to teams in larger cities; the flow of talent was roughly similar between periods.

Searching for on-field parity: evidence from National Football League scheduling during 1991-2006.

The authors analyze whether the scheduling changes the National Football League (NFL) made at the time to promote parity had the desired impact on the 1995-1998 and the 2003-2006 seasons compared to the 1991-1994 and the 1999-2002 seasons. Using the relative standard deviation (RSD), the authors find that the scheduling changes did not significantly influence parity. However, this result does not imply that scheduling changes do not affect competitive balance or have no benefits. Competitive balance can manifest itself in different ways and, therefore, it is imperative to look at multiple indicators before declaring policy and rule changes a failure or a success.

Not So Black and White Race and Promotion in Major League Baseball, 1951-1955

Jackie Robinson was the first acknowledged Black player in 20th century Major League Baseball (MLB). By 1951, a few Black players had performed credibly at the Major League level, while others were integrating Minor League Baseball. Unlike other labor situations where proxies for productivity must be used, Minor League players at the AAA level—the level just below the Major Leagues—performed and compiled their playing statistics under similar competitive environments. Using regression analysis, we test whether there is evidence of discrimination in promoting Black players to the Major Leagues, based on productivity data from the early 1950s.