(POSTER) Does a ‘coattail effect’ influence the valuation of players in the Major League Baseball draft?

This paper introduces the “coattail effect” in the Major League Baseball amateur draft, in which top college baseball prospects draw substantial attention from professional scouts, who become more likely to see the star player’s teammates and more likely to recommend selecting them with later draft picks. Using a sample of 11,540 college players drafted in 1984-2003, strong evidence is found that more players are drafted from a given college team when there is a star teammate present. Estimated effects of the coattail effect on the value players provide to major-league teams are mixed and not very conclusive.

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