The NBA and the influx of international basketball players

Erick Eschker, Stephen Perez and Mark Siegler

Applied Economics, 2004, vol. 36, issue 10, 1009-1020

Abstract: The determinants of salaries for professional athletes in the National Basketball Association (NBA) are examined to investigate how international athletes have fared relative to athletes trained in the United States. It is found that international basketball players were paid a large premium above other players of similar skills and characteristics for the 1996-97 and 1997-98 seasons, after which the premium disappeared. This temporary premium is likely attributable to a 'winner's curse' experienced by NBA teams before investing significant resources in scouting and evaluating international players.

Date: 2004
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DOI: 10.1080/0003684042000246713

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