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The Best Bang for your Bonus: Identifying Over and Undervalued Prospects in the Major League Baseball DraftSimpson, Theron 01 January 2016 (has links)
This study evaluates the relationship between different types of player prospects selected in the Major League Baseball amateur draft and their signing bonuses relative to where in the draft they were selected. In a perfect market differences in prospects’ statistical likelihoods of reaching the major leagues should be reflected in their relative signing bonus. The research reported here found that college players, regardless of position, have a higher likelihood of reaching the major leagues than high school players but this is not reflected in their signing bonus indicating that college players continue to be undervalued in the draft. Outfielders were found to reach the major leagues at a significantly lower rate than other players in other positions but are not penalized financially for the decreased likelihood of reaching the major leagues indicating an overvaluation of outfielders.
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