My New Law Review Article "It's Not About the Money"

Ever wonder why Ricky Williams signed an unprecedented incentive-laden rookie contract? Or why Nomar Garciaparra and the Boston Red Sox could never agree on a contract extension? Or why Jermaine O'Neal re-signed with the Indiana Pacers because he thought the team would retain Isiah Thomas as head coach, even when everyone else knew that Thomas was about to be fired by Larry Bird? Or why some players take hometown discounts, or why some value organizational loyalty, even when challenged with evidence that challenges their underlying beliefs?

My new law review article "It's Not About the Money: The Role of Preferences, Cognitive Biases and Heuristics Among Professional Athletes" attempts to answer these and other questions. This article represents the first ever application of behavioral law and economics to professional athletes in contemplation of contract offers. The first half of the article explores the salience of law and psychology in traditional law and economic choice models, and the second half discusses the role of cognitive biases and heuristics in specific contractual decision-making by pro athletes, including in the instances described above, but also in the contractual decision-making of Kris Benson, Tommy Salo, Barry Larkin, Teemu Selane, Matt Morris, Fred McGriff, Donyell Marshall, Matt Harpring, Fred Smerlas, Kurt Gibson, Alonzo Mourning, Eddie Guardardo, Sean Jones, Kelly Holcomb, Mike Greenwell, Jamal Crawford, Pedro Martinez, John Flaherty, Jason Christansen, and Bruce Matthews. Why did so many of them not take the most lucrative contract offer? How was their decision-making affected by either alternate preferences (e.g., playing in a warm weather city), or cognitive biases and heuristics? [as a matter of background, cognitive biases are subconscious mental errors triggered by simplified informational processes and heuristics are convenient, if unfinished predictive cues employed by the human brain.]


I will post more extensively on It's Not About the Money next week, after I have selected a law review for publication. But for a sneak preview, check out the abstract and you download the article (for free, by hitting the "New York, USA" download icon depicted to the left). I hope you all download it and give a read. As it is in draft stage, I would very much welcome any feedback at mccann[at]post.harvard.edu.

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