nep-spo New Economics Papers
on Sports and Economics
Issue of 2007‒12‒15
two papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. The Determinants of Base Pay and the Role of Race in Major League Soccer: Evidence from the 2007 League Season By Barry Reilly; Robert Witt
  2. Competition in Soccer Leagues By Bodil Olai Hansen; Mich Tvede

  1. By: Barry Reilly (University of Sussex); Robert Witt (University of Surrey)
    Abstract: This paper examines pay determination in the labor market of a professional team sport hitherto neglected by researchers in the U.S. Using data on 361 Major League Soccer (MLS) players for one recent league season, mean and median regression models are exploited to investigate salary determinants. In comport with the available empirical evidence on racial pay discrimination in other professional team sports in the U.S., this study finds no overall evidence of pay disadvantage for non-white players. However, there is tentative evidence that black players who are not U.S. citizens actually fare worse than some other groups in salary terms.
    JEL: J31 J44 J71
    Date: 2007–12
  2. By: Bodil Olai Hansen (Copenhagen Business School); Mich Tvede (Department of Economics, University of Copenhagen)
    Abstract: In the present paper a model of competition between sports clubs in a sports league is presented. Clubs are endowed with initial players but at a cost clubs are able to sell their initial players and buy new players. The results are that: if the quality of players is one-dimensional, then equilibria in pure strategies exist, and; if the quality of players is multi-dimensional, then there need not exist equilibria in pure strategies, but equilibria in mixed strategies exist. Equilibria in mixed strategies resemblance signings on deadline day in european soccer.
    Keywords: competition between sports clubs; dimension of quality of players; equilibrium in pure strategies; equilibrium in mixed strategies
    JEL: C72 D21 L83
    Date: 2007–11

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