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학술저널

Optimization of Contract Design for Baseball Players

Optimization of Contract Design for Baseball Players

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In sports, contract design is problematic. The reason is that, first, a contract is relatively short-term, and, second, player can signal to another owner while executing a contract. In the context of mechanism, it is hard to design an ex-post efficient contract because player can send hidden messages. From the principal-agent relationship, we can find an insight to derive optimality of contract for baseball players. In this paper, the main objective is to characterize optimal contract when owner encounters hidden messages from player.

Abstract

Ⅰ. Introduction

Ⅱ. Contract Design

Ⅲ. First-Best Solution

Ⅳ. Second-Best Solution

Ⅴ. Conclusion

References

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