A voucher subsidy solution is then recommended and explored in detail. The economic structure of baseball suffers from a myriad of problems, the major one being a structural system that results in vast disparities in revenue among teams. This disparity translates into differences in winning percentage based primarily on the amount of total revenue a team takes in. Reforms are seeking to restore the popular goal of competitive balance. However, looking at the situation from an economic perspective, the popular opinion of competitive balance is at odds with the efficient solution according to economists.
Restrictive practices are, however, necessary.
I argue that the existing mechanisms for redistribution, including the luxury tax, salary cap and revenue sharing, are incomplete. This research explores the optimal allocation of talent, and offers a solution in the form of voucher subsidies to reach this point. What baseball does and doesn't need An economist's perspective. Done in April of 2001 and submitted to various publications throughout the country and prominent people in the industry. Welcome to my website dedicated to baseball economics.