Observations, analysis and rants from students in Dr. Delemeester's economics classes at Marietta College.
Sunday, April 24, 2005
Free Agency
In class we talked about free agency and how in a bidding war, it is the second highest bidder that determines the players' salary. This article talks about how the Cowboys signed Darian Barnes from free agency. Barnes was signed to a one year contract for $655,000. Assuming that this price is above the league minimum, we can guess that $655,000 was a little bit higher than the revenue the second highest bidder expected to receive from signing Barnes. The Cowboys were obviously the only team that expected to receive a revenue greater than this price, which is why they signed him. To read the article, go to http://sports.espn.go.com/espn/wire?section=nfl&id=2041978
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