This paper explores free agency and it's possible effect on player performance, holding all else constant. Free agency is analyzed theoretically and econometrically as a promotion tournament of sorts, where it works as a motivator that gives players the incentive to boost their performance, in order to be rewarded with an overpaid free agent contract. The purpose of this paper, in finding the effect of free agency on performance, is to find whether or not employers in MLB are strategically overpaying free agents in order to elicit greater performance from all players, rather than simply overestimating the worth of such overpaid players.
King, Keenan, "Free-Agency in Major League Baseball & It's Effect on Player Performance" (2013). Senior Independent Study Theses. Paper 791.
Bachelor of Arts
Senior Independent Study Thesis
© Copyright 2013 Keenan King