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Comparing athletes’ mastery of salary information before and during the COVID-19 pandemic: Evidence from the national basketball association

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  • Shao, Wen-Chao
  • Zhang, Han
  • Chou, Li-Chen
  • Ye, Xi-Xi

Abstract

The coronavirus disease 2019 (COVID-19) pandemic seriously affected the global economy and industry. Unlike previous studies that have discussed the economic losses suffered by the sports industry, this article provides a two-tier stochastic frontier model to estimate the mastery of salary information by athletes and the National Basketball Association (NBA) teams, with an emphasis on modeling athletes’ salary markets. This paper presents and combines team-level data for the 2019–2020 and 2020–2021 NBA seasons. The results indicate that the salary bargaining power of the athletes was enhanced and the power of NBA teams was weakened after the COVID-19 pandemic. The outbreak of COVID-19 reduced the revenue of athletes and NBA teams, but it also prompted closer communication between the two, enhancing the understanding of salary information and equalizing the power involved in contract negotiations between athletes and NBA teams.

Suggested Citation

  • Shao, Wen-Chao & Zhang, Han & Chou, Li-Chen & Ye, Xi-Xi, 2023. "Comparing athletes’ mastery of salary information before and during the COVID-19 pandemic: Evidence from the national basketball association," Economic Modelling, Elsevier, vol. 128(C).
    • Handle: RePEc:eee:ecmode:v:128:y:2023:i:c:s0264999323003292
    DOI: 10.1016/j.econmod.2023.106517
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