The Invariance Proposition in Baseball: New Evidence

Duane Rockerbie

MPRA Paper from University Library of Munich, Germany

Abstract: This paper considers the changes in revenue sharing that occurred prior to the 2007 season and its effects on parity via its effects on marginal revenues. Based on the results from an empirical specification for team revenue, we find evidence that the reduction in revenue sharing increased marginal revenue by approximately the same amount for both small and large market clubs despite other differences in how small and large market club revenues are determined. The upshot of this result is that the modest change in revenue sharing had little to no effect on league parity in the three seasons following its implementation. The well-known invariance proposition in the economics of sport literature that predicts this result appears to hold.

Keywords: baseball; revenue sharing; parity (search for similar items in EconPapers)
JEL-codes: L12 L8 L83 (search for similar items in EconPapers)
Date: 2011-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/55020/1/MPRA_paper_55020.pdf original version (application/pdf)

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:pra:mprapa:55020

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().