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Phone: (843) 869-2355
Main Library
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West Ashley Library
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ARE SUNK COSTS IRRELEVANT? EVIDENCE FROM PLAYING TIME IN THE NATIONAL BASKETBALL ASSOCIATION.
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- Author(s): Leeds, Daniel M.1 ; Leeds, Michael A.2 ; Motomura, Akira3
- Source:
Economic Inquiry. Apr2015, Vol. 53 Issue 2, p1305-1316. 12p.- Subject Terms:
- Source:
- Additional Information
- Subject Terms:
- Abstract: We use playing time in the National Basketball Association to investigate whether sunk costs affect decision making. Behavioral economics implies that teams favor players chosen in the lottery and first round of the draft because of the greater financial and psychic commitment to them. Neoclassical economics implies that only current performance matters. We build on previous work in two ways. First, we better capture potential playing time by accounting for time lost to injuries or suspension. Second, we use regression discontinuity to capture changes when a player's draft position crosses thresholds. We find that teams allocate no more time to highly drafted players. ( JEL L83, J23, D03) [ABSTRACT FROM AUTHOR]
- Abstract: Copyright of Economic Inquiry is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)
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