Does Arbitratration Process Solve Monopsonistic Behaviour in Baseball?

Authors

Andrew Tarman '05

Abstract

In this paper, I hypothesize that players with less than six years of experience, thus not able to pursue free agency, face monopsony power in terms of their contracts. Furthermore, I believe that players with less than six years of experience have lower salaries than players with the same MRP and more than six years of experience. The arbitration process, I hypothesize, does not rid players with less than six years of experience from monopsonistic behavior. Through this research I hope to measure the impact of monopsony power on baseball players with less than six years of experience to gain a better understanding of the baseball market.

Recommended Citation

Tarman '05, Andrew (2005) "Does Arbitratration Process Solve Monopsonistic Behaviour in Baseball?," The Park Place Economist: Vol. 13
Available at: https://digitalcommons.iwu.edu/parkplace/vol13/iss1/11