Comments on: Efficiency Wages

By: David

David — Thu, 15 Sep 2011 18:08:18 +0000

“Who is left in the minors? …”

Organizational players. Players drafted so that the prospects can have teammates.

“I’m not sure the return on investment is necessarily so great that revamping the dietary structure is a slam-dunk.”

What investment? The vast majority of these guys are $5000 bonus/$990 a month guys (in season). These teams spend almost nothing on these players and treat them interchangeably with no commitment toward their development.

By: Mara Phare

Mara Phare — Mon, 21 Mar 2011 20:50:59 +0000

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By: dont touch me there

dont touch me there — Mon, 01 Nov 2010 07:43:57 +0000

Thanks buddy. Good submissions you got going on here. Have some extra sites to link to with a bit more information?

By: David MVP Eckstein

David MVP Eckstein — Wed, 10 Mar 2010 07:54:16 +0000

Dave, I love the economics.

However, I might take the idea of efficiency wages and nutrition one step further and apply them to major league talent.

My primary exposure to the theory of efficiency wages regards shirking. Shirking refers to doing less than optimal work; slacking off. Workers who are paid “the market rate” shirk because for them, at least in a saturated market, the job they currently have is substitutable provided transaction costs are low. Thus, you offer a higher wage for two reasons. One, it creates a cost disincentive — you shirk, you’re fired, you lose wage potential. Two, it attracts a stronger pool of talent (and work ethic).

So how can we apply this to players with MLB contracts? What can the league do if Andruw Jones shows up incredibly fat after signing a big contract? Obviously nothing with the union in place, but you kinda wish more teams would place in “wage reduction” clauses to deter poor habits. If Zambrano won’t stop drinking redbull, he loses $$, for example. It’s not unheard of, at least in the counterpositive. There have been contracts with “weight” incentives and the likes in the past. Perhaps one can argue the market has corrected this problem with the death of long term contracts for players not of the highest tier of talent.

Still, it makes you wonder

By: bookbook

bookbook — Tue, 09 Mar 2010 09:58:09 +0000

I like the concept of this article. My first reaction was, if the Players Union were worthy of their name they would have been advocating for better living conditions for minor leaguers for the past four decades or so. My second reaction was Major League teams don’t have roving nutritionists? Definite opportunity for competitive advantage.

Then, thinking about $25 per day:
Chipotle has some options that we’d agree are relatively healthy and in price range. Noodle company as well.
How much would be enough as a per diem? $40? $50?

It might be cheapest for teams to provide the food and require everyone to eat it together. Each minor league team could maintain a kitchen for the visiting teams. A bit overly big brother, I suppose.

By: Alireza

Alireza — Mon, 08 Mar 2010 21:50:06 +0000

I think a lot of people are missing the point about international players. Those from Latin America in particular are living very cheaply and sending remittances home to their families. In addition to not coming into the game knowing much about nutrition, they don’t have much other than their per diem to live on. Having a better clubhouse spread would go miles in improving their fitness.

By: Mike Kenny

Mike Kenny — Mon, 08 Mar 2010 13:05:47 +0000

Just to clarify some items. I do host a player in the short season NY Penn League. We dont ask for or recieve any of the players food money. As a host we arent even required to provide anything other than a clean place to stay and some family interaction. I dont believe they actually recieve anything other that a meager salary which they pay a large portion of to the clubbie who cleans and maintains their gear and uniforms. My wife and i tried to give the players nutritional meals and even went so far as to pack them lunch for shorter trips. The additional 5 dollars a day is going to be eaten up byu gas tolls and insurance on their vehicles. They are required to get to the park themselves. The players are a commodity to the teams and since hosting have seen the business side of the game. It isnt very pretty for some. I enjoy helping the kids out and will continue to do so, but a living wage would help. PS if you ever do host a player expect to be taking rode trips to see your new “son” play as they advance through the system.

By: Joseph Persyn

Joseph Persyn — Sun, 07 Mar 2010 09:35:33 +0000

Good posting

By: Raf

Raf — Sat, 06 Mar 2010 06:29:26 +0000

I’m sure a host family would send food on occasion with their players

By: Raf

Raf — Sat, 06 Mar 2010 06:23:06 +0000

To be fair, some of these 17 year olds are placed with host families, so they are getting a nutritious meal.