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The Colorado Rockies and Market Inefficiency in Major League Baseball

by Grosenbaugh, Andrew J

Abstract

The Colorado Rockies play their home games in an environment unlike any other team in Major League Baseball. The altitude effect present in Denver, CO potentially plays a role in why hitters thrive for the Rockies and pitchers struggle. Player’s statistics are altered by playing in Denver, and these performance indicators’ significance diminishes, especially for Rockies players. Statistics are influential in determining player compensation in professional baseball. The statistics of Rockies players, however, are biased because they play 81 home games at high altitude each season. The results of this paper support the notion that the Rockies capitalize on their unique effect by paying players differently than the rest of the league.

Note

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Includes bibliographical references.

Administrative Notes

The author has given permission for this work to be deposited in the Digital Archive of Colorado College.

Colorado College Honor Code upheld.

Copyright
Copyright restrictions apply.
Publisher
Colorado College
PID
coccc:11166
Digital Origin
born digital
Extent
34 pages
Thesis
Senior Thesis -- Colorado College
Thesis Advisor
Rappaport, Neal
Department/Program
Department of Economics and Business
Degree Name
Bachelor of Arts
Degree Type
bachelor
Degree Grantor
Colorado College
Date Issued
2015-05