@article{943886,
      recid = {943886},
      author = {Rockerbie, Duane W. and Easton, Stephen T.},
      title = {Contract options for buyers and sellers of talent in  professional sports /},
      publisher = {Palgrave Macmillan,},
      address = {Cham :},
      pages = {1 online resource},
      year = {2020},
      abstract = {This Palgrave Pivot re-examines salary formation in Major  League Baseball in light of real option theory to clarify  the connection between salary and marginal revenue product  for professional baseball players. Current literature has  tended to treat single-year and multi-year contracts  similarly, ignoring the potential option value for teams  and for players. Recent work points to the observation that  both high-productivity and low-productivity athletes have  salaries that systematically differ from their marginal  revenue product, and that free agents signing multi-year  contracts are overpaid relative to free agents signing  one-year contracts. This book argues that the value of  signing an athlete to a contract should be determined  similarly to the determination of the value of an  investment project or a financial asset. This book  demonstrates how to calculate the value of real options to  the player and the team owner with a simple two-year  contract, and offers extensions to the real options model  for multiyear contracts or when a player is early or late  in his career. Duane W. Rockerbie is Professor in the  Department of Economics at the University of Lethbridge,  Canada. He is a member of the editorial board of the  Journal of Sports Economics and is a past Vice-President of  the North American Association of Sports Economists (NAASE)  Stephen T. Easton is Professor in the Department of  Economics at Simon Fraser University, Canada.},
      url = {http://library.usi.edu/record/943886},
      doi = {https://doi.org/10.1007/978-3-030-49},
}