Economics of Baseball
The Dodgers cut Carl Crawford and the Royals cut Omar Infante despite owing them substantial amounts of money, and successfully avoided the sunk cost fallacy. Will the Rangers do the same with Prince Fielder?
But so do some other large market teams.
On paper, Chris Davis' $161 million contract with the Orioles is much larger than Justin Upton's $132.75 million deal with the Tigers. However, once considering Davis' deferred payments and Upton's buyout, the latter comes out on top.
Can Nolan Arenado really make over $6.5 million as a super-two? Let's consider the context by using player comparisons.
The Twins have dominated the Oceanic market, but to what return?