Did High Pay Make Gretzky Play Better? Introduction It is generally assumed that higher salaries will make players perform better. This argument is based on what is termed the superstar effect. According to Boyes and Melvin (2010) the superstar effect is when an employer is willing to pay an employee a large income if they bring a lot of money into the company (p. 331). It is this effect that largely determines the high salary of professional athletes. If the superstar effect holds then the payment of athletes should be directly tied to their performance. To see if the superstar effect holds up this paper will look at the payment of a particular player compared with their performance. In this case Wayne Gretzky was chosen because he was...The end:
.....ed Nov. 20, 2011 from http://www.hockeyzoneplus.com/salaries/ 1363. REFERENCES Boyes, W. and Melvin, M. (2001). Microeconomics, Cengage Learning, Mason, Oh. Dropyourgloves. (2011). Wayne Gretzky Hockey Stats, Salary and Fights. Dropyourgloves.com, retrieved Nov.20, 2011 from http://dropyourgloves.com/Players/Player.aspx?Player=1610 Gretzky.com (2010). Wayne Gretzky’s Career Stats. Gretzky.com, Retrieved Nov. 20, 2011 from http://www.gretzky.com/ hockey/career_stats.php. HockeyZonePlus. (2008). Wayne Gretzky. HockeyZonePlus, retrieved Nov. 20, 2011 from http://www.hockeyzoneplus.com/salaries/ 1363. Jaeger, C. (2001). Risk, Uncertainty, and Rational Action, Earthscan, USA. Tucker, I. B. (2010). Economic for Today, Cengage Learning, Mason, Oh.