Do Expected Marginal Revenue Products for National Hockey League Players Equal Their Price in Daily Fantasy Games?

摘要

The equality between wages and marginal revenue products is a backbone of competitive labor markets. This study will seek to test the congruity between the two in the market for players in daily fantasy hockey games. Any observed and statistically significant incongruity would lead to the conclusion that an individual can earn long run profit playing daily fantasy games. Both fixed effects and pooled regressions are employed to isolate inequalities between prices and expected marginal revenue products for players in daily fantasy hockey games. Any deviation of such could potentially be explained by utility maximizing gamblers or incomplete information. Robust results suggest that players playing at home and players playing against weak opponents relative to their own team strength are undervalued. Players who have performed above their average performance in recent games are overvalued. Although it is clear expected marginal revenue products and prices do not equate, performance is still largely random and hard to predict.