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April 16, 2007

Sammons questions parity, at least in the NBA

Another superb column from Bill Sammons, with the bonus of an interesting hypothesis that I think--I haven't done a literature search yet--runs counter to the sports economics literature: "parity can't work" in the NBA and "it's better to have more quality teams, even at the expense of a few extra doormats".

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The MR of a win is greater in NYC than it is in Ames, Iowa or Kansas City. Hence, if side payments were permitted, it would be jointly profit maximizing for NYC on average to have stronger teams.

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