Institutional Change and Factor Movement in Major League Baseball: An Examination of the Coase Theorem’s Invariance Principle

Institutional Change and Factor Movement in Major League Baseball: An Examination of the Coase... One version of the Coase Theorem suggests that the distribution of resources is invariant to the assignment of rights. The lack of real world examples has made empirical tests difficult. However, such a ‘rights’ change did occur in Major League Baseball in the 1970s where the ‘rights’ of players were switched from owners to players. We examine whether this change impacted the distribution of players. In the end, the characteristics of player movement do appear to have been impacted by the re-assignment of rights and therefore, calls into question the relevance of this version of the Coase Theorem. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Institutional Change and Factor Movement in Major League Baseball: An Examination of the Coase Theorem’s Invariance Principle

Loading next page...
 
/lp/springer_journal/institutional-change-and-factor-movement-in-major-league-baseball-an-Da0ahWZFOy
Publisher
Springer Journals
Copyright
Copyright © 2011 by Springer Science+Business Media, LLC.
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-011-9308-6
Publisher site
See Article on Publisher Site

Abstract

One version of the Coase Theorem suggests that the distribution of resources is invariant to the assignment of rights. The lack of real world examples has made empirical tests difficult. However, such a ‘rights’ change did occur in Major League Baseball in the 1970s where the ‘rights’ of players were switched from owners to players. We examine whether this change impacted the distribution of players. In the end, the characteristics of player movement do appear to have been impacted by the re-assignment of rights and therefore, calls into question the relevance of this version of the Coase Theorem.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Jul 6, 2011

References

  • Estimating and testing linear models with multiple structural changes
    Bai, J.; Perron, P.
  • Testing for and dating common breaks in multivariate time series
    Bai, J.; Lumsdaine, R. L.; Stock, J. H.

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


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create lists to
organize your research

Export lists, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off