Teaching Marginal Revenue Product Using Moneyball
The simulation files are available for direct download below and include a zipped file containing a copy of our working paper for instructional purposes, the project instructions for students, a 2018 spreadsheet of available free agents for the simulator, and a printable version of the spreadsheet for student use.
About The Project
In this paper, we describe a class project exploring principles of Marginal Revenue Product, Labor Markets, and estimation of firm profits through the professional baseball labor market. The goal of this project is to give the student a better understanding of MRP through the process of collecting and analyzing data about professional baseball free agents. This task highlights a key learning objective in many economics courses with an activity that increases student engagement. The project culminates in an in-class draft and season simulation activity that allows the students to apply the information they have collected in order to make decisions based on their work.