Comparative Advantage, Opera Edition
The American League believes in comparative advantage, and has a designated hitter bat for the pitcher. I prefer this: I believe in comparative advantage and division of labor (and being a White Sox fan from age 5, I like the American League anyway).
This afternoon we heard a performance of Pagliacci, before which an announcer informed the audience that the soprano was ill, but would act the role while another—the designated soprano—sang from the side of the stage. The acting was better than usual, and so was the singing—an illustration here of comparative advantage. The overall effect wasn’t good: Opera is both acting and singing, and it was absurd and disconcerting to separate them. The production function for opera requires one person doing both—division of labor makes no sense in this case.
(HT to FWH)
Labor Peace in Baseball May Not Last Forever
The following is a guest post by David Berri, a Professor of Economics at Southern Utah University. He is also the lead author of Stumbling on Wins, the general manager of the sports-economics blog Wages of Wins, and is a frequent contributor to the Freakonomics blog.
Last week I looked at the labor negotiations in the NBA. Since then, the NBA appears to have reached an agreement with its workers, ending the latest dispute in professional North American sports.
Over the last three decades, labor disputes have become a common feature in professional sports. In fact – as The Wages of Wins indicated– relative to non-sports industries, labor disputes are about 25 times more likely in professional sports. So the recent lockout in the NBA was hardly surprising. Read More »
A Sports Economist’s Thoughts on Moneyball: A Guest Post by J.C. Bradbury
J.C. Bradbury is a long-time friend and contributor to the Freakonomics blog. An associate professor of economics at Kennesaw State University, Bradbury is the author of two books on baseball: The Baseball Economist: The Real Game Exposed, and Hot Stove Economics: Understanding Baseball’s Second Season. For years, he covered the intersection of baseball and economics on his Sabernomics blog.
So with the new movie Moneyball out, we wanted to get J.C.’s thoughts on how well the book translates onto the big screen, and whether it does justice to the wonky, sabermetrics approach to baseball.
An Economist’s Thoughts on Moneyball
By J.C. Bradbury
When it was published in 2003, the book Moneyball generated a buzz in the field of economics because it covered several topics economists like, such as constrained maximization, market efficiency, entrepreneurship, and statistical analysis. To most people, economics is boring: it’s a class they took because they had to. Author Michael Lewis introduced important economic concepts through a venue that millions of Americans pay to watch. As a book, it succeeded, but I was skeptical that it could work as a movie. I was wrong. Even my wife, who only reluctantly agreed to see the movie with me, enjoyed it. Read More »
Is David Ortiz the New Yogi Berra?
Here’s what the Red Sox slugger had to say recently about the sour streak his team has been on lately, endangering its playoff hopes:
“There’s nobody to blame but everybody.”
If I were a CEO, or the president of something, or someone with even the slightest responsibility for anything, I would tuck this quote in my back pocket and whip it out when things get grim.
How Best to Realign Major League Baseball: A Freakonomics Quorum
Earlier this summer, ESPN’s Buster Olney reported that Major League Baseball and the players’ association had recently discussed a form of realignment that would result in two leagues of 15 teams, rather than the current structure of 14 teams in the American League, and 16 in the National League. This sent the sports world into a tizzy as baseball geeks everywhere weighed in on how best to realign MLB. There are a lot of ideas out there: shorten the season so each team gets one day off a week (said to be a favored position of Commissioner Bud Selig), move the Houston Astros or Florida Marlins to the American League; create three divisions of five teams each; do away with the divisions entirely; add an extra wild-card team to expand the playoffs.
There’s also a discussion about finding ways to address the disparity in miles traveled. According to this neat interactive graphic put together by Paul Robbins at the New York Times, in 2009, the Dodgers traveled a league-high 59,742 miles, while the Nationals traveled less than half that, 26,266 miles.
Not to be left out, we decided it was a good time to convene a Freakonomics Quorum. We rounded up a handful of sports economists and asked them the following question:
Read More »What proposed realignment changes seem to make the most sense from a competitive and economic standpoint for Major League Baseball?
Sensible Pricing at the Ballpark
When I was a kid, tickets for grandstand seats at Comiskey Park (where my team, the White Sox, used to play) cost the same regardless of who the opponent was (only 7 possible in those days), the time of day or day of week. At a recent Minnesota Twins game I learned that MLB has gotten smart, pricing differentially depending on the identity of the opponent and the date/time of the game.
For games in the same one-week period a home plate view grandstand seat in Target Field ranges from $36 to $45, with a higher price for night games, weekend games and, most important, for more attractive opponents (sadly, higher, other things equal, for the Red Sox than the White Sox). Probably aided by web technology, teams can do a better job of equilibrating demand and the (fixed) supply of seats, although the current price range and the partly-empty stadium in the game I saw (against the last-place Kansas City Royals) still doesn’t seem great enough to accomplish this completely.
Did Yankees Fan Really Get Hosed in Deal for Jeter Homerun Ball?
A lot of people are saying that Christian Lopez, the guy who caught Derek Jeter‘s 3,000-hit homerun ball, got hosed by the Yankees when he gave it back in return for some signed memorabilia and Yankees tickets worth an estimated $70,000. According to a Bloomberg article, the ball’s estimated value could be as high as $250,000. So the knee-jerk reaction of a lot of headlines was to assume that Lopez left $180,000 on the table, even though last month, Bloomberg reported a much more conservative estimate of between $75,000 and $100,000 for Jeter’s 3,000-hit ball. I’m not saying it couldn’t go for $250,000, but assuming it’s a given seems presumptive. Read More »
Strike Three: Do MLB Umpires Express Racial Bias in Calling Balls and Strikes?
Our paper on discrimination in baseball has finally been published (June AER). While it received a lot of media and scholarly comment in draft, the final version contained a whole new section. The general idea is that those discriminated against will alter their behavior to mitigate the impacts of discrimination on themselves. But while reducing the impacts, these changes are not costless. For example, if you’re an Hispanic pitcher and think that the white umpire is against you, you’ll change your pitches. Where will you throw? How will you throw? Read More »
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