Hakes & Sauer (2006) estimate that slugging (SLG) and on-base percentage (OBP) contribute to winning in the following way:
W in% = .500 + 2.032OBP - 2.032OBPA + .900SLG - .900SLGA
Where OBPA and SLGA is the opposing team’s on-base and slugging percentage. Assume two very bad teams (OBP = .200 and SLG = .250) are battling for an All-Star free agent, Ken Griffey Jr.
If neither team acquires Ken Griffey Jr, their OBP and SLG will not change. If one of the teams is able to acquire Ken Griffey Jr, their OBP will increase to .234 and their SLG will increase to .291.
a) If the teams play each other 162 times during the season, how many games will each team win without Ken Griffey Jr on either team?
b) If the teams play each other 162 times during the season, how many games additional games will the team win with Ken Griffey Jr.? If each additional win generates $900,000 for the team. What is Ken Griffey Jr.s marginal revenue product?