← Search

Superstars in the National Basketball Association: Economic Value and Policy

Jerry A. Hausman¹; Gregory K. Leonard²

¹ Massachusetts Institute of Technology · ² Cambridge Econometrics (United Kingdom)

An econometric analysis demonstrates that television ratings for NBA games are substantially higher when certain players ('superstars') are involved. Thus, these superstars are quite important for generating revenue, not only for their own teams but for other teams as well. Using the econometric analysis and additional information on attendance and paraphernalia sales, the authors estimate the value of Michael Jordan to the other NBA teams to be approximately $53 million. The positive externality superstars have on other teams can lead to an inefficient distribution of player talent. The authors examine several league policies that might be used to address the externality. Copyright 1997 by University of Chicago Press.

DOI

10.1086/209839

Volume

15 (4)

Pages

586-624

Language

en

Export

BibTeX

Sources

openalex crossref