The model of league conduct formulated by Ferguson, Jones, and Stewart (2000) contains an algebraic error. This note provides the relevant correction and shows that the empirical results given in their article are robust to it.

A model of major league baseball is developed which distinguishes between league behavior and individual team behavior.The league is viewed as setting rules that restrict the team's willingness to pay and/or impose costs on the transfer of players between teams. Given these rules, teams then...