{"id":126540,"date":"2024-01-23T11:04:06","date_gmt":"2024-01-23T10:04:06","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/126540\/"},"modified":"2024-11-07T05:43:36","modified_gmt":"2024-11-07T04:43:36","slug":"do-individual-salaries-depend-on-the-performance-of-the-peers-prototype-heuristic-and-wage-bargaining-in-the-nba","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/126540\/","title":{"rendered":"Do Individual Salaries Depend On the Performance of the Peers? Prototype Heuristic and Wage Bargaining in the NBA"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-126540","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"This paper analyses the link between relative market value of representative subsets of athletes in the National Basketball Association (NBA) and individual wages. NBA athletes are categorised with respect to multiple performance characteristics utilising the k-means algorithm to cluster observations and a group's market value is calculated by averaging real annual salaries. Employing GMM estimation techniques to a dynamic wage equation, we find a statistically significant and positive effect of one-period lagged relative market value of an athletess representative cluster on individual wages after controlling for past individual performance. This finding is consistent with the theory of prototype heuristic, introduced by Kahneman and Frederick (2002), that NBA teams' judgement about an athlete's future performance is based on a comparison of the player to a prototype group consisting of other but comparable athletes.","onlinedate":"2017-05-09 12:00:00","lang":"English","publication_series":"","publication_date":"20170501","publication_date_year":"","publication_date_full":false,"publication_num_pages":"34","keywords":"[]","jelcodes":"[]","related_publications":"[]","pdf":367933,"zip":null,"link":"","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"","monthly_report_pages":"","monthly_report_pages_sort":"0","issue":"534","journal":"WIFO Working Papers","publisher":"","invisible":false,"external":false,"embargo_date":"2017-05-09 12:00:00","types":[44410],"research_groups":[3491],"collaboration":"","persons":[3600,4807],"persons_data":"[{\"personId\":3600,\"personName\":\"Harald Oberhofer\",\"organisationNames\":[]},{\"personId\":4807,\"personName\":\"Marian Schwinner\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Oberhofer, H.<\\\/span><span>, &amp; Schwinner, M.<\\\/span> (2017). <span>Do Individual Salaries Depend On the Performance of the Peers? Prototype Heuristic and Wage Bargaining in the NBA<\\\/span>. <span><em>WIFO Working Papers<\\\/em><\\\/span>, (534). <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/60423\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/60423<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Oberhofer H<\\\/span><span>, Schwinner M<\\\/span>. <span class=\\\"title\\\"><span>Do Individual Salaries Depend On the Performance of the Peers? Prototype Heuristic and Wage Bargaining in the NBA<\\\/span><\\\/span>. <span>WIFO Working Papers<\\\/span>. 2017 May;(534).<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{7ab8588e22aa41e28090f6ff80814a59,<\\\/div><div>  title    = \\\"Do Individual Salaries Depend On the Performance of the Peers? Prototype Heuristic and Wage Bargaining in the NBA\\\",<\\\/div><div>  abstract = \\\"This paper analyses the link between relative market value of representative subsets of athletes in the National Basketball Association (NBA) and individual wages. NBA athletes are categorised with respect to multiple performance characteristics utilising the k-means algorithm to cluster observations and a group's market value is calculated by averaging real annual salaries. Employing GMM estimation techniques to a dynamic wage equation, we find a statistically significant and positive effect of one-period lagged relative market value of an athletess representative cluster on individual wages after controlling for past individual performance. This finding is consistent with the theory of prototype heuristic, introduced by Kahneman and Frederick (2002), that NBA teams' judgement about an athlete's future performance is based on a comparison of the player to a prototype group consisting of other but comparable athletes.\\\",<\\\/div><div>  author   = \\\"Harald Oberhofer and Marian Schwinner\\\",<\\\/div><div>  note     = \\\"Wage Bargaining in the NBA\\\",<\\\/div><div>  year     = \\\"2017\\\",<\\\/div><div>  month    = may,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  journal  = \\\"WIFO Working Papers\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Do Individual Salaries Depend On the Performance of the Peers? Prototype Heuristic and Wage Bargaining in the NBA<\\\/p><p>AU  - Oberhofer, Harald<\\\/p><p>AU  - Schwinner, Marian<\\\/p><p>N1  - Wage Bargaining in the NBA<\\\/p><p>PY  - 2017\\\/5<\\\/p><p>Y1  - 2017\\\/5<\\\/p><p>N2  - This paper analyses the link between relative market value of representative subsets of athletes in the National Basketball Association (NBA) and individual wages. NBA athletes are categorised with respect to multiple performance characteristics utilising the k-means algorithm to cluster observations and a group's market value is calculated by averaging real annual salaries. Employing GMM estimation techniques to a dynamic wage equation, we find a statistically significant and positive effect of one-period lagged relative market value of an athletess representative cluster on individual wages after controlling for past individual performance. This finding is consistent with the theory of prototype heuristic, introduced by Kahneman and Frederick (2002), that NBA teams' judgement about an athlete's future performance is based on a comparison of the player to a prototype group consisting of other but comparable athletes.<\\\/p><p>AB  - This paper analyses the link between relative market value of representative subsets of athletes in the National Basketball Association (NBA) and individual wages. NBA athletes are categorised with respect to multiple performance characteristics utilising the k-means algorithm to cluster observations and a group's market value is calculated by averaging real annual salaries. Employing GMM estimation techniques to a dynamic wage equation, we find a statistically significant and positive effect of one-period lagged relative market value of an athletess representative cluster on individual wages after controlling for past individual performance. This finding is consistent with the theory of prototype heuristic, introduced by Kahneman and Frederick (2002), that NBA teams' judgement about an athlete's future performance is based on a comparison of the player to a prototype group consisting of other but comparable athletes.<\\\/p><p>M3  - WIFO series<\\\/p><p>JO  - WIFO Working Papers<\\\/p><p>JF  - WIFO Working Papers<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Do Individual Salaries Depend On the Performance of the Peers? 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