Arbitrage in a Basketball Economy.

This paper addresses the role of the manager in a team production setting. The coach of a basketball team faces a team production arbitrage problem. He must monitor and enforce a process that distributes shots among players such that the expectation that each shot taken will be made is maximized. This paper articulates an agency theory of this arbitrage process and tests it with data on the National Basketball Association. Copyright 1990 by WWZ and Helbing & Lichtenhahn Verlag AG