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Overpayment and Reservation Salary in the Nippon Professional Baseball League

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  • Wen-Jhan Jane

Abstract

This study examines predictions based on the job search model and estimates the overpayment within the labor market in Nippon Professional Baseball using stochastic frontier analysis. The empirical results indicate that more experienced players demand a higher reservation salary, and the effect increases at a decreasing rate. In the overpayment analysis, it is found that international players receive preferential labor market treatment. Moreover, from the analysis of team-level overpayments, payment wastage in terms of a team’s overpayment in a resource-abundant team within a large market (e.g., the Tokyo Giants) results in that team not being the most successful.

Suggested Citation

  • Wen-Jhan Jane, 2013. "Overpayment and Reservation Salary in the Nippon Professional Baseball League," Journal of Sports Economics, , vol. 14(6), pages 563-583, December.
    • Handle: RePEc:sae:jospec:v:14:y:2013:i:6:p:563-583
    DOI: 10.1177/1527002511433857
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    References listed on IDEAS

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    Cited by:

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    2. Terry, Ryan P. & McGee, Jeffrey E. & Kass, Malcolm J., 2018. "The not-so-free agent: Non-performance factors that contribute to free agent compensation premiums," Sport Management Review, Elsevier, vol. 21(2), pages 189-201.
    3. Jye-Shyan Wang & Chih-Fu Cheng & Wen-Jhan Jane, 2014. "Buying success or redistributing payment: bidirectional causality in Korean Professional Baseball League," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 247-260, December.
    4. Müller, Michael, 2015. "Leiharbeit im Profifußball: Sind Leihspieler stärker motiviert?," Discussion Papers of the Institute for Organisational Economics 6/2015, University of Münster, Institute for Organisational Economics.
    5. Müller, Michael, 2016. "The strongest link in a weak team? Performance of players with and without outside options in relegated football clubs," Discussion Papers of the Institute for Organisational Economics 07/2016, University of Münster, Institute for Organisational Economics.

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