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Valuing Cricketers Using Hedonic Price Models

Author

Listed:
  • Ajit Karnik

    (Middlesex University Dubai, United Arab Emirates, A.Karnik@mdx.ac)

Abstract

This article is concerned with estimating hedonic price equations for cricketers. The 2008 auction in India for cricketers to play in the Indian Premier League (IPL) of Twenty20 cricket has revealed the bids made for 75 players. Using the information on the bids, the author has estimated hedonic price equations. The author finds that the usual way of judging cricketers—in terms of runs scored and wickets taken—is reflected in the estimated equations. In addition, young players command a substantial premium over other players as do players from India and Australia. The author extends the analysis to evaluate the performance of players in the IPL tournament of 2008 and estimates the rates of return to the owners of the teams. The estimated models are checked for robustness by incorporating the results of the IPL Auction of 2009. The author finds that the models are robust to the inclusion of additional cricketers bought during the latest IPL auction.

Suggested Citation

  • Ajit Karnik, 2010. "Valuing Cricketers Using Hedonic Price Models," Journal of Sports Economics, , vol. 11(4), pages 456-469, August.
    • Handle: RePEc:sae:jospec:v:11:y:2010:i:4:p:456-469
    DOI: 10.1177/1527002509350442
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    References listed on IDEAS

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    Cited by:

    1. Lenten, Liam J.A. & Geerling, Wayne & Kónya, László, 2012. "A hedonic model of player wage determination from the Indian Premier League auction: Further evidence," Sport Management Review, Elsevier, vol. 15(1), pages 60-71.
    2. Deepak Srivastav & Puram Praveen & Rudra Sensarma & Anand Gurumurthy, 2021. "Does salary dispersion affect team performance in cricket? Evidence from the Indian Premier League," Working papers 441, Indian Institute of Management Kozhikode.
    3. Colin Cannonier & Bibhudutta Panda & Sudipta Sarangi, 2015. "20-Over Versus 50-Over Cricket," Journal of Sports Economics, , vol. 16(7), pages 760-783, October.
    4. Randy R. Grant & Brittany Teahan, 2019. "Pricing Footraces in the United States: An Application of Hedonic Pricing to the Running Industry," The American Economist, Sage Publications, vol. 64(2), pages 293-305, October.
    5. Siddhartha K. RASTOGI, 2017. "What’s a Cricketer’s Worth? Predicting Bid Prices for Indian Premier League Auctions," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 1, pages 127-133.

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