Sports Economics 2017 1st Edition Berri Solutions Manual: Go To Download The Full and Correct Content Document: Anual
Sports Economics 2017 1st Edition Berri Solutions Manual: Go To Download The Full and Correct Content Document: Anual
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Chapter Six Study Questions
Solution: We can see which teams win and lose. Statistics are tracked to see which players are
responsible for this outcome. So statistics are tracked to separate the player from the player’s
teammates.
2. When did the first baseball box score appear? Who developed batting average, and when
Solution: The first box score appeared in 1845. Batting average was developed by H. A.
Dobson in 1872.
4. According to the Asher Blass model, what is the relative value of a single, double, triple,
Solution: A double is slightly more valuable than a single (not nearly twice as valuable). A
triple is about twice as valuable as a single, while a home run is nearly three times as valuable
5. Which is the “better” measure of a pitcher’s production: ERA or K/BB (and what are
they)? Answer this question by referring to the work of Anthony Krautmann, Andrew Zimbalist,
and J. C. Bradbury.
Solution: Krautmann and Zimbalist argued that earned run average (ERA) does better than
strikeout-to-walk ratio (K/BB) at explaining runs. But Bradbury noted that ERA is not a very
good measure of a pitcher’s performance because it depends on the defensive players around the
pitcher. This was illustrated by noting the relative inconsistency of ERA. Bradbury argued that
a better measure is K/BB because this measure is more about the pitcher’s skill.
6. Relative to baseball players and hockey goalies, how consistent are basketball players
Solution: Basketball players are much more consistent than baseball players or hockey goalies.
This goes back to the “short supply of tall people.” Because the population of potential
basketball players is small, the differences in athletes are relatively large and more consistent
across time.
7. According to Bill Gerrard, what is a “complex invasion sport”? What are examples of
Solution: Gerrard argued that a complex invasion sport is one where group of players cooperate
8. Why is it difficult to statistically model a complex invasion sport? What happens if you
ignore the nature of complex invasion sports and simply attempt to estimate the impact of every
Solution: Complex invasion sports have a hierarchal nature, where higher-level actions (i.e.,
scoring) depend on lower-level actions (turnovers, passing, etc.). If your model already notes the
higher-level action (i.e., scoring), then the lower-level actions will generally appear to be
statistically insignificant because the impact of the lower-level actions is already captured by the
higher-level action. Hence you need multiple equations to capture the impact of both higher- and
lower-level actions.
9. Do NBA players really “create” shots? Explain.
Solution: Players do not seem to “create” shots. The number of shots taken by a team is not
impacted by the loss of a player who takes many shots (e.g., Allen Iverson or Carmelo Anthony).
What we see in the data is that scorers actually just take shots from their teammates.
Solution: Scully argued that you need to estimate two models. One of these connects the player
statistics to wins. This allows one to measure how many wins a player creates. A second model
connects team revenue to team wins. This allows one to measure the dollar value of an
11. How do fixed revenues (define) impact our ability to measure the MRP of athletes in
Solution: Fixed revenues are revenues that do not change with outcomes. An example is
broadcasting revenue, which a team receives whether it wins or loses. Players are clearly paid
more when broadcasting revenue rises. But according to the Scully approach, the player’s MRP
cannot rise with more broadcasting revenue because wins do not impact broadcasting revenue.
So when fixed revenues are large, it will appear that players are generally overpaid.
12. What is a simpler approach to addressing the issue of whether players are overpaid or
underpaid? What does the simpler approach tell us about athletes being overpaid or underpaid
across time? What does this reveal about athletes around the world today?
Solution: One can just look at the percentage of revenue paid to players. Taking this approach, it
appears that athletes were underpaid before the introduction of free agency. It also indicates that
athletes in Europe, where labor restrictions are less common, are paid much better than North
American athletes.
13. Explain how Anthony Krautmann measured the MRP of a professional baseball player.
What did he assume about the market for baseball free agents?
Solution: Krautmann regressed free-agent salaries on the free agent’s statistics. This gave him a
measure of how the market valued these actions. He then used this model to forecast the salaries
of nonfree agents. Krautmann assumed that the free-agent labor market was efficient.
14. Krautmann’s approach was applied to baseball, football, and basketball in Krautmann,
von Allmen, and Berri (2009). Were athletes in these sports found to be overpaid or underpaid?
Solution: In each of these sports, players without the ability to sell their services in a free-agent
15. Karl Marx argued in the 19th century that capitalism exploits workers; J. B. Clark argued
in the 19th century that workers are paid what they are worth in a capitalist system. How does
the study of sports allow us to address the arguments of Marx and Clark?
Solution: The study of sports suggests that Marx is right that workers are exploited when they
lack bargaining power. When workers have bargaining power in sports, though, the results are
more consistent with Clark’s argument. So the study of sports allows us to see when Marx and
16. Imagine you are hired by an NHL team. How much money would you suggest your team invest
in a goalie?
Solution: The textbook argues that goalies are not very different from each other. So a team should not
invest much money in this position, since goalies appear to be relatively the same.
17. Imagine you are hired by an NHL team. How would you measure the marginal product of a
Solution: Hockey is a complex invasion sport, so one needs to first estimate the link between outcomes
(team standing points) and goals scored and goals against. Then one needs to link goals scored to shot
attempts and shooting efficiency. After this, one needs to determine how a skater impacts shot attempts
and shooting efficiency. Another model is also needed to determine the impact that centers and forwards
18. In 2016–17, Andrew Wiggins attempted 1,570 field goals for the Minnesota Timberwolves, a
mark that led the team. His effective field goal percentage, though, was only 48.4%. This mark was
below the league average and the average for the Timberwolves. So if Wiggins were removed from this
Solution: We learned in the chapter that a player’s shots are mostly taken from teammates, so shot
attempts would not likely change if Wiggins were lost. If he were replaced by an average shooter,
though, team efficiency would improve. Team offense would likely get better.
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