Based on the economic model developed in our textbook on pages 168-170, the Oakland A's aren't supposed to field a competitive team year after year because the author Rodney Fort says that a large market team will always win more then a small market team. Fort argues that with the existence of large and small market teams there is revenue imbalance because the large market team brings in more revenue then the small market team. Revenue imbalance then causes competitive imbalance because the large market team will buy more talent then the small market team and winning percentage is described as a function of talent. As a result of buying more talent, the large market team will have a higher payroll so not only does revenue imbalance cause competitive imbalance but it also causes payroll imbalance. One might say that this explanation is valid when assessing major league baseball because of teams like the New York Yankees and Boston Red Sox who among others are large market teams who win and because of small market teams like The Tampa Bay Devil Rays and the Kansas
Based on the economic model developed in our textbook on pages 168-170, the Oakland A's aren't supposed to field a competitive team year after year because the author Rodney Fort says that a large market team will always win more then a small market team. Fort argues that with the existence of large and small market teams there is revenue imbalance because the large market team brings in more revenue then the small market team. Revenue imbalance then causes competitive imbalance because the large market team will buy more talent then the small market team and winning percentage is described as a function of talent. As a result of buying more talent, the large market team will have a higher payroll so not only does revenue imbalance cause competitive imbalance but it also causes payroll imbalance. One might say that this explanation is valid when assessing major league baseball because of teams like the New York Yankees and Boston Red Sox who among others are large market teams who win and because of small market teams like The Tampa Bay Devil Rays and the Kansas