Main navigation | Main content
Ben Campbell of the Fisher College of Business will present "Utility Players and Utility Functions: How Compensating Differentials Affect Rant Appropriation in the NBA."
Ben Campbell of the Fisher College of Business will present “Utility Players and Utility Functions: How Compensating Differentials Affect Rant Appropriation in the NBA” on Friday, December 7, from 1:00 to 2:30 p.m. in 2-215 Carlson School.
The compensating differentials literature offers logic that undesirable jobs command higher pay. This willingness to make tradeoffs between pay and non-pecuniary benefits is of great strategic significance since it may allow other stakeholders, such as shareholders, to capture more rents in the context of a competitive advantage. Campbell examines this using team-level data in the NBA from every regular season game spanning 2000-2009.
Results demonstrate that players forgo financial compensation to move to their hometown team and to move to a playoff team. Both findings support compensating differentials logic. However, when stars move home they appropriate a greater financial compensation than moving to a non-hometown team, which suggests that stars create more value at their hometown team.
This seminar is sponsored by the Department of Strategic Management and Organization.
To request disability accommodations, please contact Sharon Hansen at firstname.lastname@example.org.