Team payroll, pitcher and hitter payrolls and team performance: Evidence from the U.S. Major League Baseball

Xing Lu, Jason Matthews, Miao Wang () and Hong Zhuang

Economics and Business Letters, 2018, vol. 7, issue 2, 62-69

Abstract: We use the U.S. Major League Baseball team level data in 1985-2015 and find an inverse U-shaped relationship between team payrolls and winning percentages. Furthermore, when investigating the winning effects of pitcher and hitter payrolls, we find the similar curvilinear relationship between pitcher/hitter salaries and team performance.

Date: 2018
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