Free Contracts Research Articles

Compensating wage differentials: Evidence from the National Hockey League

Using data for 1,471 unrestricted free agent player contracts in the NHL, this paper finds evidence that players are willing to sacrifice earnings to play on a higher quality team, and this tradeoff increases with player age. This result, which is consistent with the theory of compensating wage differentials, is robust to multiple specifications and estimation methodologies.

Does It Hurt Financially, Too? Effects of Injury Proneness on Contract Design in Major League Baseball

Abstract: This paper seeks to determine the financial costs of recent injuries and market expectations of players’ future attrition rates by investigating the impacts on free agent contract designs, as represented by the yearly salary and contract length. The empirical findings, derived from data about 698 free agent contracts in Major League Baseball between 2011 and 2018, indicate that injuries exert different impacts on salaries versus contract lengths. For example, free agents who recently injured an elbow or shoulder receive shorter contracts than those not injured in the previous season, but their salaries are not affected. Market expectations of player attrition in the upcoming season reduce both contract lengths and salaries. For players, these results reaffirm the importance of staying healthy and finding ways to signal the low likelihood of future injuries to ensure their remuneration. For managers, the results emphasize the need to track free agents’ health status carefully, especially to avoid a winner’s curse.

Is local grid parity affordable in China? Discussion on the regional wind power potential and investment returns under policy uncertainty

In China, achieving grid parity is critical for a low-cost carbon-neutral transition over the next decades. However, it may post investment dilemma in renewable energy, given the significant differences in resource endowment across various regions. In this paper, we quantify the regional wind resource endowment and evaluate the impact of different grid parity scenarios on regional wind power investments, including long-term contracts with fixed prices, free contracts with decreasing prices and the marketisation of the electricity market. The results show that while the wind power investment returns decrease in all regions with the feed-in tariff degression, the regions in west China with less developed economies are more affected. Additionally, the regional wind power investment return significantly and positively correlates with the regional wind power potential, but the degree of correlation decreases with the increase of electricity price uncertainty. Regions with abundant wind power resources, such as Inner Mongolia, Xinjiang and Gansu, cannot guarantee a sufficient return on investment when the uncertainty of electricity prices increases. It is suggested that alternative support schemes (e.g., long-term contract) and safeguard policies should be designed to reduce the uncertainty of electricity prices and offset the investment incentives created by subsidies (especially in western regions).

Do high-income individuals respond to the change in the marginal tax rate? Evidence from Major League Baseball

ABSTRACT Income taxation affects individuals’ incentives to work, save, and take risks. These behavioural responses to taxation is key to evaluating efficiency cost of taxation. Especially, the response of rich individuals to taxation is important because of their impact on the tax revenue and on the economy. In this paper, I analyse the response of Major League Baseball players to the increase in the top tax rate due to the American Taxpayer Relief Act of 2012. Using difference-in-differences estimation applied to the players with different years of free agent contracts, I do not find any negative effect of the tax increase on the players’ performance.

Free on-Board Contracts in International Trade; The Law and Practice

Free on-Board Contracts in International Trade; The Law and Practice

Some Considerations on the Material Scope of the New Digital Content Directive: Too Much to Work Out for a Common European Framework

The aimof this article is to analyse some of themain issues regarding thematerial scope of the new Directive 2019/770/EU on certain aspects concerning contracts for the supply of digital content and digital services. It focuses on the concept of digital content and services and on the changes made to the rules laid down in Directive 2011/83/EU on consumer rights. To this end, it pays particular attention to the treatment of digital content depending on whether or not it is supplied in a tangible medium and to the identification of the rules applicable in each case. It also addresses the exclusion of so-called goods with digital elements from the scope of Directive 2019/770, the requirements for such exclusion and the legal regime applicable to such goods under the new Sales Contract Directive 2019/771/EU. Finally, it analyses the novel inclusion of the so-called ‘free contracts’ within the scope of Directive 2019/770 where the counter performance of the consumer consists solely in providing personal data in exchange for digital content or services supplied, the exceptions to that inclusion in viewof the formthrough which such data are collected and its problematic interaction with the General Data Protection Regulation 2016/679/EU.

Sunk costs in the NBA: the salary cap and free agents

The previous research on the role sunk costs play in the National Basketball Association (NBA) has come to mixed conclusions. We use a direct measure of sunk costs, player compensation, and a quasi-experimental method that considers the endogenous relationship between compensation and productivity. Using the spike in salary cap for the 2016–2017 season, from new television broadcasting contracts, we find compensation has a significant effect on playing time. Specifically, we use players signing free agent contracts in 2015–2016 or 2016–2017. For both groups, we analyze the change in salary from the pre-contract season to the post-contract season. Using the difference-in-differences, we find the inflated salary cap, from the new television contracts, increased player compensation by 81.7%, on average. Instrumental variables estimations show the increase in compensation significantly affects playing time. The change in salary yields an additional 1.93 min played per game, which is approximately equal to the effect of a one-standard deviation increase in contemporaneous productivity. Furthermore, we find that our conclusions are robust to the use of various advanced analytical measures or traditional box-score statistics.

Institutional arrangements in the commercialization of electric energy from sugarcane biomass in the Brazilian midwest

abstract: Reducing the use of fossil fuels and mitigating environmental impacts justifies the generation of electricity from renewable sources. In Brazil, sugarcane is the biomass that most generates electricity, and Mato Grosso do Sul state accounts for 10% of this electricity. Production can be traded in the spot market, long-term contracts regulated by the Federal Government, or free contracts between companies. Despite these options, only half of the sugarcane industries in Mato Grosso do Sul commercialize electricity. Based on Transaction cost economics, the objective of this work is to identify the most suitable governance structures used in the commercialization of electricity produced by the sugarcane plants in the state of Mato Grosso do Sul and to evaluate the institutional environment impact on these structures. A questionnaire was applied to all sugarcane companies in the state, and interviews were conducted with specialists and regulatory agencies. The results indicate that the widespread use of plural forms of governance for the commercialization of energy reduces the risks linked to a weak institutional environment and judicialization of the spot market. The preference for free contracts and a large number of short-term transactions indicate a lack of trust in the existing institutions, with the need to strengthen independent regulatory agencies.

Entre servidumbre y trabajo asalariado: la historiografía castellana sobre las relaciones de arrendamiento en el mundo concejil bajomedieval.

El objetivo del presente trabajo es realizar un análisis crítico de la historiografía de las últimas décadas referida a las relaciones de arrendamiento de la tierra en los concejos castellanos de la baja Edad Media. Tales contratos vinculan a los grandes propietarios de los concejos con los campesinos de las aldeas. Se presenta en primer lugar la tesis sobre el carácter feudal de las oligarquías concejiles, del cual se derivaría el supuesto carácter servil de las formas de explotación del trabajo. Luego se presentan distintos enfoques alternativos sobre los arrendamientos, que abarcan desde su supuesto carácter de contratos libres hasta la interpretación que los asimila a relaciones asalariadas. El objetivo del análisis es mostrar que los arrendamientos son en esencia formas de movilización de la fuerza de trabajo campesina. Por lo tanto, obedecen a una racionalidad específica de control de los productores por parte de los propietarios de la tierra, cuyas modalidades concretas deben estudiarse con más profundidad.

The Legality of Prisoner of War Labour In England, 1648–1655*

Abstract Prisoners of war formed a legally distinct category amongst the many thousands of people forcibly employed in England and the English American colonies in the mid-seventeenth century, but they have yet to be studied as such. Focusing on 1648 to 1655, this article explains how a succession of English governments sent their war captives into servitude with private masters despite the prohibition of hard labour for Christian prisoners in the customary laws of war. They instead operated under the logic of the English poor law, in which the indigent could meaningfully consent to serve a master even while under duress. The case of Scottish and Dutch prisoners of war in the Bedford Level fen drainage project shows how the Council of State and the drainage company board members conceptualized common prisoners as willing workmen. Prisoners, ambassadors, and a variety of English observers instead thought that war captives should not have to work for their subsistence or their captors' profit. Nevertheless, common prisoners continued to labour under the aegis of free contracts into the eighteenth century.

Relativistic length contraction and time dilation as dynamical phenomena

It is commonly accepted that a rod after having been accelerated and then left free contracts by the Lorentz factor , and also that a clock after having been accelerated and then returned to rest exhibits time dilation in accordance with the proper time formula . Although both issues have been debated numerous times, no models have been proposed to trace the dynamical nature of these phenomena. The purpose of the present paper is to propose a simple relativistic model of an elastic rod, which allows exact analytical solutions for a number of problems. The solutions of two problems are presented: (i) acceleration of the rod by a constant force applied at one of its ends during a finite time interval, resulting in the Lorentz contraction, (ii) acceleration and deceleration of a light clock, resulting in time dilation.

Biosecurity institutions and the choice of contracts in international fruit supply chains

Biosecurity regulations and standards govern international agricultural inter-firm transactions. Drawing mainly on new institutional economics, our study offers insights into the institutional factors, at both the macro and meso levels, that influence the choice of inter-firm contracts for Chilean apple exports. First and foremost, it examines the influence of the Sanitary and Phytosanitary (SPS) provisions included in trade agreements signed by Chile with its trade counterparts on the choice of alternative contracts displaying different degrees of completeness. It also focuses on the institutions in the importing countries, the legal institutions enforcing contracts, the efficiency of logistics and the effect of hidden informal rules such as corruption, on the choice between free consignment, minimum guaranteed and sale contracts. We also explore the private institutions, primarily linked to direct imports by supermarkets. The results of our econometric analysis show that less complete contracts, i.e. free consignment and minimum guaranteed arrangements, are chosen when exporting to countries with safe business environments and higher number of SPS provision in international trade agreements. On the contrary, when exporting to non-reliable countries, exporters tend to protect themselves through more complete contracts, i.e. sale contracts. We found evidence that direct exports to supermarkets are more prone to occur under sale contracts which suggest the dual function of contracts, both as a safeguard and as a coordination tool to adopt specific customers' requirements.

Coopetition with a Risk-Pooling Arrangement in the Railroad Industry

The main purpose of this study was to investigate coopetition with a risk-pooling arrangement in the railroad industry. The study discusses whether railroad companies voluntarily sign free alternative transportation contracts, which are contracts where non-suspended lines provide railroad services to affected passengers when some lines are suspended. The main results of this study can be summarized as follows. First, railroad companies do voluntarily wish to sign free alternative transportation contracts. In other words, coopetition with a risk-pooling arrangement is always realized. Second, in the case of a monopolistic line, when the probability of an accident occurring is relatively high, it is desirable for policy makers to provide a new line and achieve a risk-pooling arrangement.

Satisfaction and switching intention in mobile services: Comparing lock-in and free contracts in the Spanish market

Switching costs are a relevant issue affecting market competition in the mobile services industry. However, customer switching costs have not disappeared, since numerous leading mobile services companies use lock-in strategies, such as obliged long-term contractual relationships. The present study provides and empirically test a conceptual model in order to analyze the creation of customer satisfaction and switching intention with mobile services, as well as to examine the differences between lock-in and free contracts in a South European mature market – Spain. For this purpose, drawing on a sample of 370 customers, we developed Structural Equation Modeling (SEM) through a multi-group analysis. Our findings suggest that service quality is one of the key determinants of satisfaction, while the availability of attractive alternatives is the main switching barrier. Moreover, some interesting differences were found between the two type of contracts analyzed. Consequently, we suggest shifting resources to customer retention through improved service quality for reducing customer churn rate.

Great expectations: An analysis of major league baseball free agent performance

We explore whether free agents in Major League Baseball meet the expectations set forth by newly signed contracts. The value and duration of these contracts are negotiated between the player (and his agent) and the signing team and are based primarily on the player's performance to date, projected future performance, and potential marketing value to the team. We develop two classes of models to explore this problem using a variety of regression‐ and tree‐based machine learning algorithms. The market model uses player and team data to predict the market value of a player's performance (i.e., average contract salary). The performance model uses the same data to predict wins above replacement as a surrogate for overall player performance. We translate this measure into dollars using position‐based conversion factors. Analysis of these models demonstrates that the performance model more consistently predicts and assesses player value with respect to their free agent contracts. Together, these models can be used to target or avoid free agents (or other players) whose performance‐based value differs significantly from their market value. © 2016 Wiley Periodicals, Inc. Statistical Analysis and Data Mining: The ASA Data Science Journal, 2016

Customer-Oriented Approach to Power Supply Reliability Ensuring

In recent years, the problem of customer focus in power engineering is gaining more and more attention. The authors offer a mechanism for implementation of customer-oriented approach in power supply reliability ensuring. It is proposed to decompose power supply reliability into the system and address ones. Address reliability of power supply ensuring is presented in the form of the separate service provided on the basis of free bilateral contracts between the electric grid company and end users of the electric power. Customers are expected to determine reliability level according to the estimation of adequate indemnity in case of interruption or power limitation.

Tax Avoidance

By using a data set of professional basketball players' free agent contracts from the National Basketball Association (NBA) between the 2001-2002 and 2007-2008 seasons, which has rich data on worker productivity, the author is able to identify the effect that changes in income tax rates have on the labor migration decisions of NBA free agents. After controlling for other observable characteristics of teams, cities, and states, the author finds that an increase in the marginal income tax rate faced by NBA basketball players that play for a given team leads to a decrease in the average skill of the NBA free agents that migrate to that team.

Civil Subordination and Racial Dependence: Reading Race Through Pateman’s Sexual Contract

Carole Pateman depends in Sexual Contract on a distinction between marriage and the family or household: one entails civil subordination between adults; other also encompasses relations among children. In one, subordination is made invisible because engaged by and equal adults. In other, subordination is justified as (temporary) dependence of inferior to superior. This distinction, I argue, usefully frames shifting associations of blackness with dependency in U.S. South. In late 19th century South wives of both races, and black workers of both genders, were understood as household dependents. Subsequently, marriage and employment, as free contracts, were separated from household either wholly or in part. The association of blackness with dependence, and whiteness with independence, was simultaneously transformed: white workers, their civil subordination ideologically masked, could claim independence while racialized dependency was transferred onto clientelistic relations with state. Tracing these linked transformations, I argue, provides a richer account of distinct kinds of subordination involved in wage labor, marriage, and racial hierarchy. I conclude by reexamining contract and subordination in Carole Pateman’s work, arguing that two can be conceptually and historically separated.

Invisible hands, invisible objectives: bringing workplace law and public policy into focus

Table of Contents Preface Abbreviations Part I: Workplace Law and Public Policy XXX Chapter 1. The Goals and Assumptions of Workplace Law and Public Policy: The Need for Explicitness Explicit Objectives. Explicit Models. Explicit Reform. Workplace and Public Policy XXX. Chapter 2. The Evolution of U.S. Workplace Law and Public Policy: A Tapestry of Hidden Assumptions The Old Deal: Free Markets and Contracts Between Equals. The New Deal: Balancing Power Through Labor Unions and Fair Labor Standards. The Employment Law Era: Human Resource Management and Individual Rights. The Global Era: Free Trade and Personal Responsibility. Hidden Assumptions, Conflicting Assumptions Part II: An Explicit Scorecard for Workplace Law and Public Policy Chapter 3. Efficiency The Efficiency Scorecard. Globalization. Technology and Skills. Flexibility. Employee Benefits. Administrative Burdens of the Litigation Enforcement Model. Conclusion. Chapter 4. Equity Balancing Work and Non-Work Needs. A Living Wage. Balanced Income Distributions. Security and Social Safety Nets. Nondiscrimination and Fairness. Good Cause Dismissal. Nonstandard Work Arrangements. Conclusion. Chapter 5. Voice Employee Free Speech. Individual Self-Determination. Consultation, Codetermination, and Social Dialogue. Countervailing Collective Voice. Conclusion Part III: Creating Coherent Laws and Public Policies on Work Chapter 6. A Pluralist Manifesto for Workplace Law and Public Policy Analytical Insights, Normative Concerns. The Need for a Principled System of Workplace Law and Public Policy. A Pluralist Manifesto for Regulating the Employment Relationship. Chapter 7. Promoting Efficiency International Labor Standards. Training Programs. Flexibility. Weakening the Ties that Bind: Employee Benefits. A Coherent Body of Workplace Law. Promoting Efficiency. Chapter 8. Achieving Equity Balancing Work and Non-Work Needs. A Living Wage. Balanced Income Distributions. Security and Social Safety Nets. Nondiscrimination and Fairness. Good Cause Dismissal. Nonstandard Work Arrangements. Achieving Equity. Chapter 9. Facilitating Voice Employee Free Speech. Individual Self-Determination. Consultation, Codetermination, and Social Dialogue. Countervailing Collective Voice. Facilitating Voice. Chapter 10. Bringing Workplace Law and Public Policy Into Focus, and Balance 000 The Difficulty of Legislative Reform. On What Level? Local, State, National, and International Reforms. Paying for (Im)Balance. Working Out a Balance. Notes 000 Bibliography 000 About the Authors 000 Index 000

Ideals in sequential bargaining structures

PurposeThe purpose of this paper is to suggest possible extensions of the baseline Rubinstein sequential bargaining structure – applied to the negotiation of stationary infinitely termed contracts – that incorporate a direct reference to the “ideal” utilities of the players. This is a feature of the Kalai‐Smorodinsky cooperative solution – even if not of the generalized Nash maximand; it is usually not encountered in non‐cooperative equilibria.Design/methodology/approachFirst, it is argued that different bargaining protocols than conventionally staged are able to incorporate temporary all‐or (and)‐nothing splits of the pie. Scenarios are advanced where such episodes are interpreted either as – out of bargaining – war or unilateral appropriation events, or free experience contracts. Second, some modifications to the Rubinstein infinite horizon paradigm are experimented with, allowing for mixed strategies under alternate offers, and matching or synchronous decisions in a simultaneous (yet, discrete) bargaining environment. Solutions are derived where the reference to the winner‐takes‐it‐all outcome arises as a parallel – out‐of‐the‐protocol – outside option to the status quo point. In some cases, the limiting maximand for instantaneous bargaining was derived.FindingsRubinstein's optimal periodic division in a closed contract remained robust to most of the settings.Originality/valuePresents possible extensions of the baseline Rubinstein sequential bargaining structure.