NBA ENDGAME: DO SALARIES MATTER?
NBA ENDGAME: DO SALARIES MATTER?
Author(s): Frank TENKORANG, Bree L. DORITY, Eddery LAMSubject(s): Labor relations, Sports Studies, Socio-Economic Research
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: Salary dispersion; labor economics; National Basketball Association;
Summary/Abstract: This paper estimates the association between salary dispersion and the probability that an NBA team leading two minutes before the end of a playoff game won the game. Economic theory indicates the a priori relationship is ambiguous and the existing empirical literature finds mixed results as to the direction of the relationship. We use game-level data from the 2012 and 2013 NBA playoffs and allow the association to be nonlinear. Overall, our results indicate there may be U-shaped relationship between salary dispersion and win probabilities; however, the point estimates individually and jointly are not statistically significant. Thus, we conclude there is no evidence in our sample that salary dispersion and NBA win probabilities are related.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2014
- Issue No: 14
- Page Range: 51-62
- Page Count: 12
- Language: English
