"This article examines the impact of hometown market size on competitive balance in Major League Baseball. We use a four-equation simultaneous model of win percent, team payroll, team total revenue, and team local revenue in order to avoid simultaneity bias in the estimates. Using two-stage...

The salaries of major league baseball players is a common subject for analysis in the sports economics literature. Although hitters and pitchers represent two separate groups, each of these two groups of players is assumed to be homogeneous so that aggregation within each group is appropriate....