We describe a class project exploring principles of marginal revenue product and labor markets through the professional baseball labor market. No prior knowledge of baseball is required to implement this project. The objective is to provide the student a better understanding of economic principles by collecting and analyzing data about professional baseball free agents. This is intended to highlight economic principles while increasing student engagement. The project culminates in an in-class draft and season simulation activity that allows the students to apply the information they have collected in order to make decisions based on their work.
Jadrian J. Wooten and Dustin R. White
Wooten, J., & White, D. (2018). An In-Class Experiment to Teach Marginal Revenue Product Using the Baseball Labor Market and Moneyball. Journal of Economics Teaching, 3(1), 115-133. DOI: 10.58311/jeconteach/7b55e0e305e1c8ca05431a4c849a6c87aa2325ab