Friday, April 16, 2010

Fixed Costs, Payroll, and the Player Market

Over at The Book Blog, there is a very interesting discussion taking place about team payrolls and profit maximization in what is a competitive bidding market with relatively novel constraints (when compared to most places). It's part of the thread that posts the discussion of Tom Tango and Rod Fort about MR vs. MP from a sabermetric and economic view. I think there are a lot of questions here to be answered, and I don't think they've been fully explained in academic or in sabermetric literature. The conversation picks up around Comment 40-ish (referencing Phil Birnbaum's comment at #31). A lot of people chiming in, including David Gassko, Cyril Morong, and others.

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