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Salary Determination in the National Hockey League Is Arbitration Efficient?

Author

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  • James Lambrinos
  • Thomas D. Ashman

Abstract

The final-offer arbitration system in baseball has been studied quite extensively, but there has not been an investigation into the effects of the arbitration system used in the National Hockey League (NHL). The goal of this study is to determine if arbitrated salaries in the NHL differ from negotiated salaries. Following the work of Ashenfelter, the objective of arbitrators is to use the same factors in making their arbitration decisions as are used for negotiated salaries. The results show that for forwards and defensemen, arbitrated salaries are not significantly different from negotiated salaries.

Suggested Citation

  • James Lambrinos & Thomas D. Ashman, 2007. "Salary Determination in the National Hockey League Is Arbitration Efficient?," Journal of Sports Economics, , vol. 8(2), pages 192-201, May.
    • Handle: RePEc:sae:jospec:v:8:y:2007:i:2:p:192-201
    DOI: 10.1177/1527002505279342
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    References listed on IDEAS

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    1. Paul L. Burgess & Daniel R. Marburger, 1993. "Do Negotiated and Arbitrated Salaries Differ under Final-Offer Arbitration?," ILR Review, Cornell University, ILR School, vol. 46(3), pages 548-559, April.
    2. David Frederick & William Kaempfer & Martin Ross & Richard Wobbekind, 1998. "Arbitration versus negotiation: the risk aversion of players," Applied Economics Letters, Taylor & Francis Journals, vol. 5(3), pages 187-190.
    3. Frederick, Donald A., 1998. "Letters," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 13(01), pages 1-1.
    4. Ashenfelter, Orley, 1987. "Arbitrator Behavior," American Economic Review, American Economic Association, vol. 77(2), pages 342-346, May.
    5. Neil Longley, 1995. "Salary Discrimination in the National Hockey League: The Effects of Team Location," Canadian Public Policy, University of Toronto Press, vol. 21(4), pages 413-422, December.
    6. Phillip A. Miller, 2000. "A Theoretical and Empirical Comparison of Free Agent and Arbitration-Eligible Salaries Negotiated in Major League Baseball," Southern Economic Journal, John Wiley & Sons, vol. 67(1), pages 87-104, July.
    7. David J. Faurot & Stephen McAllister, 1992. "Salary Arbitration and Pre-Arbitration Negotiation in Major League Baseball," ILR Review, Cornell University, ILR School, vol. 45(4), pages 697-710, July.
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    Cited by:

    1. Dennis Coates, 2017. "Returns to Handedness in Professional Hockey," Sports Economics, Management, and Policy, in: Bernd Frick (ed.), Breaking the Ice, pages 41-56, Springer.

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