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Risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues

In sports leagues that use an annual draft to assign eligible players to clubs, having a value associated with a draft selection can allow clubs to anticipate future growth of players and, if a trading period exists, assist negotiations when exchanging draft selections and players. Typically, mean d...

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Detalles Bibliográficos
Autores principales: Tuck, Geoffrey N., Richards, Shane A.
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2019
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6534347/
https://www.ncbi.nlm.nih.gov/pubmed/31125362
http://dx.doi.org/10.1371/journal.pone.0217151
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author Tuck, Geoffrey N.
Richards, Shane A.
author_facet Tuck, Geoffrey N.
Richards, Shane A.
author_sort Tuck, Geoffrey N.
collection PubMed
description In sports leagues that use an annual draft to assign eligible players to clubs, having a value associated with a draft selection can allow clubs to anticipate future growth of players and, if a trading period exists, assist negotiations when exchanging draft selections and players. Typically, mean draft values often decline in either an exponential or geometric manner with increasing draft selection number. Aggregate mean values have been used to compare trade packages. However, clubs may also want to ensure that a trade does not increase the probability of obtaining poor players in the draft. This paper therefore considers equivalence of risk as an alternative trading strategy for club list managers. Here, risk is defined as the probability of the aggregate value of the received draft selections being below a minimum acceptable level. For risk equivalence, a premium over and above mean market value may need to be provided when trading to secure higher draft selections.
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spelling pubmed-65343472019-06-05 Risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues Tuck, Geoffrey N. Richards, Shane A. PLoS One Research Article In sports leagues that use an annual draft to assign eligible players to clubs, having a value associated with a draft selection can allow clubs to anticipate future growth of players and, if a trading period exists, assist negotiations when exchanging draft selections and players. Typically, mean draft values often decline in either an exponential or geometric manner with increasing draft selection number. Aggregate mean values have been used to compare trade packages. However, clubs may also want to ensure that a trade does not increase the probability of obtaining poor players in the draft. This paper therefore considers equivalence of risk as an alternative trading strategy for club list managers. Here, risk is defined as the probability of the aggregate value of the received draft selections being below a minimum acceptable level. For risk equivalence, a premium over and above mean market value may need to be provided when trading to secure higher draft selections. Public Library of Science 2019-05-24 /pmc/articles/PMC6534347/ /pubmed/31125362 http://dx.doi.org/10.1371/journal.pone.0217151 Text en © 2019 Tuck, Richards http://creativecommons.org/licenses/by/4.0/ This is an open access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Tuck, Geoffrey N.
Richards, Shane A.
Risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues
title Risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues
title_full Risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues
title_fullStr Risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues
title_full_unstemmed Risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues
title_short Risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues
title_sort risk equivalence as an alternative to balancing mean value when trading draft selections and players in major sporting leagues
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6534347/
https://www.ncbi.nlm.nih.gov/pubmed/31125362
http://dx.doi.org/10.1371/journal.pone.0217151
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