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Social and Behavioral Sciences Commons™
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- Major league baseball (4)
- Retirement (4)
- Effort (3)
- Free agency (3)
- Performance (3)
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- Ability (2)
- Collective bargaining (2)
- Collective bargaining agreement (2)
- Contract length (2)
- Contracts (2)
- Fixed effects (2)
- Hitters (2)
- Ordinary least squares (2)
- Shirking (2)
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- Guaranteed contracts (1)
- Incentive (1)
- Incentives (1)
- Irrational exuberance (1)
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Articles 1 - 7 of 7
Full-Text Articles in Social and Behavioral Sciences
Boom & Bust: The Perils Of Guaranteed Long Term Contracts. Evidence From Ops100 Performance Over The Contract Cycle, Heather M. O'Neill
Boom & Bust: The Perils Of Guaranteed Long Term Contracts. Evidence From Ops100 Performance Over The Contract Cycle, Heather M. O'Neill
Business and Economics Faculty Publications
This study focuses on panel data of 256 MLB free agent hitters under the 2006-2011 Collective Bargaining Agreement (CBA) to demonstrate that hitters, on average, increase their offensive production, measured by OPS100, during the last year of their contract and subsequently underperform the first year of the newly signed long term contract. The contract year phenomenon arises from the incentive to land a lucrative guaranteed contract for players not intending to retire. Signing a long term guaranteed contract creates an incentive to shirk (underperform) the first year of the new contract because performance and pay become unlinked and the need …
Do Hitters Boost Their Performance During Their Contract Years?, Heather M. O'Neill
Do Hitters Boost Their Performance During Their Contract Years?, Heather M. O'Neill
Business and Economics Faculty Publications
Each season, baseball fans and journalists alike identify which players are in the final years of their contracts because a lot rides on how the players produce in their “contract year.” Will a player boost his effort and performance in an effort to improve his value and bargaining power? Or will he crumble under the pressure? Or are players’ performances uncorrelated with where they stand in their contract cycles?
Do Mlb Hitters Boost Performance In Their Contract Year?, Heather M. O'Neill
Do Mlb Hitters Boost Performance In Their Contract Year?, Heather M. O'Neill
Business and Economics Faculty Publications
This study focuses on 256 MLB free agent hitters playing under the 2006-2011 CBA to determine whether they boost their offensive performance in their contract year. Prior studies’ results are mixed, depending on the econometric technique used and the choice of the offensive performance measure.
Having multiple year observations per player, one can incorporate the unobserved traits of the players (ability, risk aversion, work ethic, etc.) by using Fixed Effects (FE) estimation. Since these unmeasured player traits are likely to be correlated with observed predictors of performance (games played, playoff contention, age, etc.), traditionally used Ordinary Least Squares (OLS) and …
Do Major League Baseball Hitters Engage In Opportunistic Behavior?, Heather M. O'Neill
Do Major League Baseball Hitters Engage In Opportunistic Behavior?, Heather M. O'Neill
Business and Economics Faculty Publications
This study focuses on 256 Major League Baseball free agent hitters playing under the 2006–2011 collective bargaining agreement to determine whether players engage in opportunistic behavior in their contract year, i.e., the last year of their current guaranteed contracts. Past studies of professional baseball yield conflicting results depending on the econometric technique applied and choice of performance measure. When testing whether players’ offensive performances increase during their contract year, the omitted variable bias associated with OLS and pooled OLS estimation leads to contrary results compared to fixed effects modeling. Fixed effects regression results suggest players increase their offensive performance subject …
Do Major League Baseball Hitters Come Up Big In Their Contract Year?, Heather M. O'Neill, Matthew J. Hummel
Do Major League Baseball Hitters Come Up Big In Their Contract Year?, Heather M. O'Neill, Matthew J. Hummel
Business and Economics Faculty Publications
In sports, especially baseball, there is a lot of talk about contract year performance. Beginning in spring training and continuing throughout the season, sports journalists and fans converse about how players in the last year of their contract will perform. Experts in the media, often ex-baseball players themselves, speculate contract year players will have break-out seasons in order to secure a better contract in upcoming contract negotiations. This leads to the question: do baseball players increase their effort and performance during their contract year to increase the value of their next contract?
Opposing The Lottery In The U.S.: The Forces Behind Individual Attitudes Towards Legalization In 1975, Andrew J. Economopoulos
Opposing The Lottery In The U.S.: The Forces Behind Individual Attitudes Towards Legalization In 1975, Andrew J. Economopoulos
Business and Economics Faculty Publications
In the 1970s, opposition to the lottery started to fracture in the US. This study examines causes of the fracture and historical factors that contributed to changes in individual attitudes towards legalization. The opponents at the time held to traditional arguments against legalized lotteries—negative economic effects, costs to others and increased crime. Unlike in the past, however, there was weak religious institutional opposition to lotteries. Individuals with a strong commitment to their religious affiliation were more resistant to pro-lottery arguments, but in most cases could be convinced to support the lottery. The pre-World War II generation remained steadfast against the …
The Search For Stock Market Bubbles: An Examination Of The Nyse Index, Andrew J. Economopoulos, Avinash G. Shetty
The Search For Stock Market Bubbles: An Examination Of The Nyse Index, Andrew J. Economopoulos, Avinash G. Shetty
Business and Economics Faculty Publications
Many have put forth reasons why the stock market has climbed to new and unprecedented heights. Two reasons are examined: (1) investors are expecting prices to increase and are bidding up price irrationally; (2) investors have moved to a long-term strategy and are requiring a lower risk premium. For the latter reason, the rise in stock prices is due to a change in the fundamentals, and for the former reason the rise represents the classical bubble. The evidence indicates that risk preferences have changed while price momentum does not appear during bubble periods.