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What Is Right With Scully Estimates of a Player’s Marginal Revenue Product

John Bradbury

Journal of Sports Economics, 2013, vol. 14, issue 1, 87-96

Abstract: Krautmann contends that Scully’s method for estimating the marginal revenue products of baseball players using team revenues is flawed. Krautmann suggests an alternate method that uses free-agent salaries to impute players' revenue contributions. The Scully method has its weaknesses; however, its flaws are not as serious as Krautmann claims. Though Krautmann’s free market returns method offers a useful approach for estimating players' marginal revenue products, it suffers from deficiencies that the Scully method avoids; thus, it is not necessarily superior to revenue-based estimates.

Keywords: marginal revenue product; baseball; salary (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:jospec:v:14:y:2013:i:1:p:87-96

DOI: 10.1177/1527002511418981

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