- Consulting Editors
- The Oxford Handbook of Sports Economics
- Preface to Volume Two: Economics Through Sports
- Prejudice and Progress in Baseball: Lessons on the Economics of Race and Discrimination
- The Economics of Discrimination: Evidence from Basketball
- Gender and Discrimination in Professional Golf
- The Economics of Discrimination: Evidence from Hockey
- The Production Technology of Major League Baseball
- Measuring Performance in the National Basketball Association
- Frontier Models and Their Application to the Sports Industry
- Age and Performance Under Pressure: Golfers on the LPGA Tour
- Salary Dispersion and Team Production: Evidence From the National Hockey League
- Travel and Population Issues in Modeling Attendance Demand
- Demand, Attendance, and Censoring: Utilization Rates in the National Football League
- Demand for Attendance: Price Measurement
- Major League Baseball is Just Like Mcdonald's?: Lessons from Unrecognized Rival Leagues
- The Market Structure of Professional Sports and the Implications for Stadium Construction and Team Movements
- Location, Location, Location?: Sports Franchise Placement in the Four Major U.S. Sports Leagues
- Event Analysis
- Behavioral Biases and Sportsbook Pricing in Major League Baseball
- Multiplier Effects and Local Economic Impact
- Contingent Valuation of Sports
- The Economics of Crime Reconsidered: A Game Theoretic Approach with an Empirical Test from Major League Baseball
- Illustrations of Price Discrimination in Baseball
- Contest Theory and its Applications in Sports
- Tournament Incentives in Professional Bowling
Abstract and Keywords
This article explores the issue of salary dispersion and its effect on productivity. It uses salary and performance data from the National Hockey League (NHL) to distinguish between the theoretical alternatives, thus weighing in on an important issue in labor economics and industrial relations. In addition, it describes the intuition behind the two competing hypotheses. It follows with a discussion of the empirical model and the data used to test the “tournament” versus “fairness” hypotheses. The empirical results are elaborated. The relatively larger payrolls lead to greater team performance. The empirical results clearly and strongly support the “fairness” model when using conditional salary dispersion measures.
Leo H. Kahane, Department Of Economics, Providence College.
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