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    League policy, invariance, and player mobility and pay: The case of the National Basketball Association

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    Genre
    Thesis/Dissertation
    Date
    2017
    Author
    Diehl, Mark
    Advisor
    Drayer, Joris
    Committee member
    Leeds, Michael (Michael A.)
    Yang, Yang
    Maxcy, Joel G.
    Department
    Tourism and Sport
    Subject
    Sports Management
    Economics
    Competitive Balance
    Invariance
    League Policy
    Monopsony
    National Basketball Association
    Sports Economics
    Permanent link to this record
    http://hdl.handle.net/20.500.12613/1096
    
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    DOI
    http://dx.doi.org/10.34944/dspace/1078
    Abstract
    The focus of this dissertation is imperfectly competitive sports labor markets and the effects of league labor policy on player mobility, compensation, and job location choice. The analyses conducted herein contributes primarily to a broad area of research within sports economics that generally uses changes in league labor rules to examine employer monopsony power and the validity of the Invariance Principle, which states that the distribution of playing talent in a sports league is invariant to the ownership of the rights to players’ services. After a critical review of the literature and some background on the National Basketball Association (NBA), a broad-to-narrow approach is used to present evidence from three empirical essays. Essay one examines the effects of 40 years’ worth of institutional change on competitive balance in the NBA. Essay two investigates the effects of more recent free agency rules on player mobility and pay. Finally, essay three narrows the focus a bit further to the effects of nonwage job characteristics on player wages and the implications of such nonwage attributes for player movement.
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