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The effect of NBA free agency on pla...

Erikson, Austin.

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The effect of NBA free agency on player utility.

Record Type:	Electronic resources : Monograph/item
Title/Author:	The effect of NBA free agency on player utility./
Author:	Erikson, Austin.
Published:	Ann Arbor : ProQuest Dissertations & Theses, : 2016,
Description:	120 p.
Notes:	Source: Masters Abstracts International, Volume: 56-01.
Contained By:	Masters Abstracts International56-01(E).
Subject:	Economic theory. -
Online resource:	http://pqdd.sinica.edu.tw/twdaoapp/servlet/advanced?query=10157550
ISBN:	9781369125764

The effect of NBA free agency on player utility.
Erikson, Austin.

The effect of NBA free agency on player utility. - Ann Arbor : ProQuest Dissertations & Theses, 2016 - 120 p.

Source: Masters Abstracts International, Volume: 56-01.

Thesis (M.S.)--South Dakota State University, 2016.

Observably, free agents in the National Basketball Association often make misguided decisions during the free agency period. These decisions may have a direct effect on a player's performance and salary, affecting their overall utility. Research exists confirming that moving through free agency leads to an effect on player performance, but no study has explored the effect of changing teams through free agency on a player's salary. As a significant number of players enter this market every year, research on this area is crucially important. The null hypothesis for performance is: H0: moving to a different team through free agency leads to a decrease in player performance. The hypothesis for a player's salary is that moving to a different team through free agency will lead to an increase in the magnitude on a player's contract. Ordinary Least Squares regressions were used to test these hypotheses for two datasets. The main findings of this study are that players who re-sign with the team they played for in the previous year (in free agency) will earn an estimated $494,723.60 more on average over the next two years of their contract while performing slightly worse (an average decrease in performance of 4.36%). With an awareness of the potential drop in performance, players who choose in free agency to re-sign could increase their utility by earning a larger salary.

ISBN: 9781369125764Subjects--Topical Terms:

1556984
Economic theory.

The effect of NBA free agency on player utility.
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500 $a Source: Masters Abstracts International, Volume: 56-01.
500 $a Adviser: George Langelett.
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520 $a Observably, free agents in the National Basketball Association often make misguided decisions during the free agency period. These decisions may have a direct effect on a player's performance and salary, affecting their overall utility. Research exists confirming that moving through free agency leads to an effect on player performance, but no study has explored the effect of changing teams through free agency on a player's salary. As a significant number of players enter this market every year, research on this area is crucially important. The null hypothesis for performance is: H0: moving to a different team through free agency leads to a decrease in player performance. The hypothesis for a player's salary is that moving to a different team through free agency will lead to an increase in the magnitude on a player's contract. Ordinary Least Squares regressions were used to test these hypotheses for two datasets. The main findings of this study are that players who re-sign with the team they played for in the previous year (in free agency) will earn an estimated $494,723.60 more on average over the next two years of their contract while performing slightly worse (an average decrease in performance of 4.36%). With an awareness of the potential drop in performance, players who choose in free agency to re-sign could increase their utility by earning a larger salary.
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