This paper discusses and a study titled "The Economic Effects of a Salary Cap on a Professional Sports League" by Eric Pick.
Written in 2005; 1,125 words; 8 sources; $ 44.95
Paper Summary:
This paper analyzes a study by Eric Pick called "The Economic Effects of a Salary Cap on a Professional Sports League" that attempts to develop and apply an econometric model to the issue. The study is based on a model that is limited, so the most that could emerge from it is a potentially useful formula to be applied on a broader scale than the two team universe addressed by the author and that may or may not be applicable to a variety of different types of sports leagues.
From the Paper:
"The study by Eric Pick entitled "The Economic Effects of a Salary Cap on a Professional Sports League" is an attempt to develop and apply an econometric model to the subject at hand. The study is based on a model that is limited, so the most that could emerge from it is a potentially useful formula to be applied on a broader scale than the two team universe addressed by the author and that may or may not be applicable to a variety of different types of sports leagues. The same basic issues do apply to different types of sports leagues, and efforts to apply a salary cap have been part of major sports leagues for some time. In 1994, a threatened basketball strike led to an agreement that involved salary caps, among other provisions. In that case, as an end to the players' union was threatened, the players... "
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