Instant Access to the Journals You Need

for just $40 per month.

Start Your Free Trial

The Economics of Baseball Contraction

The Economics of Baseball Contraction


In the fall of 2001, Commissioner Bud Selig announced that two teams would be eliminated from Major League Baseball. After ensuing litigation and collective bargaining, contraction has been postponed until 2007 but remains a possibility. This article examines the economics of contraction of teams in a sports league, first developing the basic welfare economics of expansion and contraction and then investigating whether the private incentives of existing teams lead to inefficient contraction decisions. The core finding is that, using financial information from the 2001 season, all teams in Major League Baseball probably generate positive net social benefits, but the existing teams will benefit by approximately $1 billion from the elimination of the two weakest teams.
Loading next page...

You're reading a free preview. Subscribe to read the entire article.

And millions more from thousands of peer-reviewed journals, for only $40/month.

Start Your Free Trial

What content is in DeepDyve?

  • Read and share from thousands of the leading scholarly journals from Springer, Elsevier, Nature, IEEE, Wiley-Blackwell and more.
  • All the latest content is available, no embargo periods.

Rent Scholarly Articles?

  • Read the full article in your browser.
  • Access all of your rentals from the cloud anywhere you have an internet connection.
  • Beautiful reading experience – Full charts and figures, just like the PDF.
  • Read as much as you'd like - whenever you'd like.

Happy Users

“In one word renting from DeepDyve is FANTASTIC!!! ... 99% of the time I only need access to an article for a month or so, so renting the articles is perfect for me.”

Adam S.

“Thanks for a great service! For an unaffiliated science blogger like myself this is like a dream come true.”

Seppo P.

“Hi guys, I cannot tell you how much I love this resource. Incredible. I really believe you've hit the nail on the head with this site in regards to solving the research-purchase issue.”

Daniel C.

“Let me seize this opportunity and congratulate you on the service you are rendering to the scientific community.”

Joao B.