Arbitration in the classroom: a classroom experiment to model MLBs salary arbitration

Amber Brown

Chapter 14 in Teaching Sports Economics and Using Sports to Teach Economics, 2022, pp 208-219 from Edward Elgar Publishing

Abstract: A knowledge of the salary arbitration process is essential for understanding how Major League Baseball wages are determined and the controversies that arise during collective bargaining. This experiment is designed to simulate the Final Offer Salary Arbitration (FOA) process. Students are assigned roles as club owners, players or arbitrators. Owners and players argue their cases to a panel of three arbitrators. Students learn the procedures of FOA in a hands-on and memorable way. The data from the experiment are collected and compared to MLB data and the discussion that follows explores the impact of arbitration on MLB wages. Other topics discussed include the role of risk preferences, monopsony power, determinants of marginal revenue product, sabermetrics, and spillover effects. Differences with NHL arbitration and emerging strategies are also considered. The experiment can be done with or without the risk assessment and is easily completed in a fifty-minute class.

Keywords: Economics and Finance; Teaching Methods (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/edcoll/9781800884175/9781800884175.00023.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

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:elg:eechap:20612_14

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().