Is Professional Baseball Fielders' Performance Reflected in Their Compensation Structure? An Application of Three-Stage Data Envelopment Analysis

Jwu-Rong Lin, Chen-Jui Huang, Chun-Kuei Hsieh () and Ming-Lun Lee
Additional contact information
Jwu-Rong Lin: Department of International Business, Tunghai University, Taiwan
Chen-Jui Huang: Department of Finance, Tunghai University, Taiwan
Chun-Kuei Hsieh: Department of International Business, Tunghai University, Taiwan
Ming-Lun Lee: Department of International Business, Tunghai University, Taiwan

Journal of Economics and Management, 2012, vol. 8, issue 1, 101-120

Abstract: Once a national sport, baseball in Taiwan has been devalued with repeated cheating in local games and underperformance in international tournaments. Although some attribute its demise to the compensation structure, there does not seem to be any empirical assessment of whether Taiwan's baseball players are paid based on their efficient performance. This paper investigates a sample of 59, 190, and 385 fielders in Taiwan, Japan, and the US, and applies three-stage (including individual and system) data envelopment analysis (DEA) to evaluate the compensation structure with 25 batting and fielding records in 2008 and compensation data in 2009. Overall, our findings suggest that the compensation structure in Taiwan's professional baseball industry appears to be more (less) efficient in terms of national (international) rankings, implying a significant compensation gap for local players vis-a-vis those with the same performance in Japan and in the US. Hence, it is imperative to reestablish the credibility of the industry to attract more fans, which will serve to secure a higher level of compensation for Taiwan's players.

Keywords: professional baseball; fielder; three-stage system DEA; technical efficiency (search for similar items in EconPapers)
JEL-codes: D24 L14 M51 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.jem.org.tw/content/pdf/Vol.8No.1/04.pdf (application/pdf)
http://www.jem.org.tw/content/abstract/Vol.8No.1/English/04.htm (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jec:journl:v:8:y:2012:i:1:p:101-120

Access Statistics for this article

Journal of Economics and Management is currently edited by Cathy W. S. Chen and Shih-Wen Hu

More articles in Journal of Economics and Management from College of Business, Feng Chia University, Taiwan Contact information at EDIRC.
Bibliographic data for series maintained by Yi-Ju Su ().