Monday, November 29, 2010
Rewinding Jeter
I’ve always wanted to try to figure out if there was an optimal point to signing a deal, like when Jeter turned down one long-term deal for an even longer-term deal.
Basically, as a player, are you overpaid for deals signed when you are 32, and possibly underpaid for deals signed when you are 37, so that you are better off trying to get a heavily-discounted 8yr deal at 32 rather than a slightly-discounted 5yr deal, and then try to sign a new 3 year deal at 37 (if you are even still in baseball)?
Put simply: is there a market-value inefficiency to the aging curve?


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