Valuation theory question
Posted: January 28th, 2018, 4:26 am
Related to your most recent post, I'm not quite sure how to answer this in a way that feels right.
Replacement/marginal value is calculated by generating the valuation of the worst player at a given position and setting that to the minimum bid, and then you build off that to figure out the prices for the better players.
Does this necessarily assume that players/values are distributed normally? If the catcher pool was Buster Posey and nine Tucker Barnharts, is Posey's price the same as it would be if it was nine Buster Poseys and one Tucker Barnhart? If it was you'd have to do something else to make all of the players in the league add up to the league budget, but is it as easy as that?
If there were nine Poseys and a Barnhart, would you expect all of the Poseys to sell for the same price or is there some effect that describes the urgency of getting one increasing as there are fewer remaining? How would you calculate that?
Replacement/marginal value is calculated by generating the valuation of the worst player at a given position and setting that to the minimum bid, and then you build off that to figure out the prices for the better players.
Does this necessarily assume that players/values are distributed normally? If the catcher pool was Buster Posey and nine Tucker Barnharts, is Posey's price the same as it would be if it was nine Buster Poseys and one Tucker Barnhart? If it was you'd have to do something else to make all of the players in the league add up to the league budget, but is it as easy as that?
If there were nine Poseys and a Barnhart, would you expect all of the Poseys to sell for the same price or is there some effect that describes the urgency of getting one increasing as there are fewer remaining? How would you calculate that?