With his temp assignment in Miami at an end, has LeBron gone perm?
His fans in Cleveland would like to think so, and so does Tyler Cowen, the popular writer and economist behind Marginal Revolution. He figures LeBron used assignment longevity as the major factor to return home:
"NBA salaries are subject to price controls at some margins, so neither Miami nor Cleveland could pay LeBron more. Therefore a theory of profit maximization predicts LeBron will choose the deal that extends his career the most, so as to maximize lifetime income and perhaps also fun. Another year playing also probably means higher endorsement income than a year in retirement."
Economists like to write this way. Everything for them falls into a theory of choice. It's always so financial.
But what about the non-financial factors? Emotion. Altruism. Nostalgia.
"Is it possible – God forbid – that the theory of choice could encompass non-financial factors? Like maybe someone as nutty as it seems would be willing to trade one unit of financial gain for 10 units of helping people back home?" I commented on Cowen's post.