Answers are grounded in this paper and cite their sources.
In a recent article in this journal, Stefan Szymanski develops a generalized version of the two-team diminishing marginal revenue model of win percentage determination and talent allocation. The standard version of this model assumes a fixed supply of talent for a given season, focusing on the allocation of players among teams. Szymanski claims that this assumption is inappropriate and offers his generalized model as a solution. This comment argues, on the contrary, that the fixed supply assumption underlying the standard model is appropriate for its usual applications, given the “peculiar economics” of sports labor markets.
No takes yet. Share an insight, caveat, or question.
E. Woodrow Eckard (2006) studied this question.
Synapse has enriched 10 related papers. Consider them for comparative context: