What is it about?
We show how performance-enhancing drug testing improved the competitive balance of MLB by tracing out its effects on franchise values, team profits, revenues, and player costs.
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Why is it important?
Our work takes a holistic approach to modeling how the decisions teams make with regard to roster construction were impacted by PED use and their broader impact on MLB as a whole. This cost-benefit analysis of PED testing reveals that MLB was largely positively affected by PED testing, but also that there remain areas of the testing policy that could be improved.
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This page is a summary of: The Competitive Effects of Performance-Enhancing Drugs: MLB in the Posttesting Era, Journal of Sports Economics, December 2018, SAGE Publications,
DOI: 10.1177/1527002518817584.
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