In our 2006 paper, we examined the implications of Michael Lewis?book for the labor market in Major League Baseball. Our tests provided econometric support for Lewis?claim of mis-pricing in the baseball labor market’s valuation of batting skills. We also found suggestive evidence that the dispersion of statistical knowledge throughout baseball organizations was associated with a sharp attenuation of the mis-pricing. This paper takes a closer look at the economic issues raised by Lewis for the baseball labor market. We extend the sample both backward and forward in time, seeking to...Read more
