Billy Beane provides a lot of excellent quotes in Moneyball, but perhaps none better than the following exchange with a scout: “Over and over the old scouts will say, “The guy has a great body,” or, “This guy may be …
In basic economics, supply and demand intersect at a point Q* and P*, where these values represent the equilibrium. But when supply is reduced, and demand is increased, the equilibrium changes. The market eventually corrects and the new equilibrium is …
Baseball Theory: Supply and Demand in the Trade Market Read more »
In economics, the two main branches are microeconomic theory and macroeconomic theory, each having subfields such as labor economics, game theory, contract theory, applied, etc. with econometrics being the tools used to study economics. If economics is the study of …
This post is another on the topic of behavioral economic theory, after writing about understanding bias in decision making by the manager and General Manager and further by looking at how Prospect Theory can explain why teams are hesitant to …
Prospect Theory: Mental Accounting… Delayed Production Read more »
In my last blog post, I referenced behavioral economics and tried to explain why field managers and front offices make certain decisions. There was one behavioral economics theory – the most commonly known one – that I left out, Prospect …
My background is in economics – it is my undergraduate degree and I am currently a master’s student in the subject – and one of the biggest components in the field is understanding decision making. How does a firm maximize …
Understanding Bias in Decision Making: Managerial and Front Office Read more »
Major League Baseball has mandated a 60 game season, which will cause changes in the playoffs. Baseball is the proverbial marathon where one game doesn’t mean as much given the amount of games played. Over a 162 game season, the …
Major League Baseball and the Players Association are negotiating to play the 2020 season. The latest proposal is a 76 game season with 75 of a percent prorated salary, or in other words, 35 percent of their initial salary (76/162*0.75). …
MLB Proposal: COVID-19 Risk and Wage Differentials Read more »
On Monday, Mike Persak of the Pittsburgh Post-Gazette wrote on a piece called “Pirates on pause: Is it time to be more aggressive on the bases?” Mike had a conclusion of “Basically, the Pirates weren’t very aggressive with stealing bases, …