Essays on the Economics of the National Basketball Association (N.B.A.): Testing for Inefficiencies in the N.B.A. Labor Market
type: CreativeWork
description: This dissertation is comprised of three economic essays, that each examine the labor market for players in the National Basketball Association (N.B.A.). Neoclassical economics often incorporate models that assume individuals are utility-maximizing agents who behave rationally. However, many studies in the field of behavioral economics have found evidence of irrational decision making, both within laboratory environments as well as in natural settings. The objective of this paper is to provide additional research to this growing body of literature by using empirical data collected from the N.B.A. to conduct quasi-field experiments. Although some may question their generalizability, one of the main advantages of using professional sports data is due to the abundant amount that is meticulously collected and regularly updated. Additionally, the enormous financial incentives rewarded to professional athletes make a strong case for the validity and reliability of the results. The first chapter of this paper looks at whether the quality of program a basketball player chooses to play while in college, has any significant effects on their future professional careers. The paper uses salary and performance data from both Division I Men’s N.C.A.A. Basketball as well as the N.B.A. to compare players who attended what I consider to be “elite college basketball programs” to those who had offers to play at one of these elite programs but instead chose to attend another school. The research was partially motivated by an earlier study that looked at the financial effects of attending more academically selective colleges. Despite the common belief that academically elite schools would offer greater financial benefits upon graduation, the researchers found no significant differences in the career earnings of students who attended elite schools to those who were accepted to elite schools but chose to attend other, less selective schools. Using several econometric models, the results fro…
abstract: This dissertation is comprised of three economic essays, that each examine the labor market for players in the National Basketball Association (N.B.A.). Neoclassical economics often incorporate models that assume individuals are utility-maximizing agents who behave rationally. However, many studies in the field of behavioral economics have found evidence of irrational decision making, both within laboratory environments as well as in natural settings. The objective of this paper is to provide additional research to this growing body of literature by using empirical data collected from the N.B.A. to conduct quasi-field experiments. Although some may question their generalizability, one of the main advantages of using professional sports data is due to the abundant amount that is meticulously collected and regularly updated. Additionally, the enormous financial incentives rewarded to professional athletes make a strong case for the validity and reliability of the results. The first chapter of this paper looks at whether the quality of program a basketball player chooses to play while in college, has any significant effects on their future professional careers. The paper uses salary and performance data from both Division I Men’s N.C.A.A. Basketball as well as the N.B.A. to compare players who attended what I consider to be “elite college basketball programs” to those who had offers to play at one of these elite programs but instead chose to attend another school. The research was partially motivated by an earlier study that looked at the financial effects of attending more academically selective colleges. Despite the common belief that academically elite schools would offer greater financial benefits upon graduation, the researchers found no significant differences in the career earnings of students who attended elite schools to those who were accepted to elite schools but chose to attend other, less selective schools. Using several econometric models, the results fro…
author: Lee, Samuel S
keywords: Economics
date published: 2019-01-01T08:00:00Z
date modified: 2026-07-24T01:39:59Z
provider: Claremont Graduate University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Claremont Graduate University