Analysis

Trade Values 101: How the Market Affects Price

Trade Values 101: How the Market Affects Price

I've done a lot of the trade values articles, not only looking at the value of guys the Pittsburgh Pirates have, but also looking at guys the Pirates could acquire.  There is one common question that gets asked in regards to the values that are presented: how does that change when other teams enter the mix?  Usually that's people looking for a bigger return on the players on the Pirates' roster.  The thought is that you might get a team to overpay out of desperation.  Sometimes that's the idea that a player might cost the Pirates more if other teams are interested.

The values are always designed to reflect the standard market price.  As with any market, supply and demand can definitely play a role.  As an example, let's take a look at a fictional market for first basemen, using Carlos Pena's value.  Before we look at the teams, here is a refresher on Pena's value, from the article a few weeks ago:

YEAR
SALARY
WAR
VALUE

2011
$10.0
2.5
$0.9

TOTAL
$10.0
2.5
$3...

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Tim is the owner and editor in chief of Pirates Prospects. He started the site in January 2009, and turned it into his full time job during the 2011 season. Prior to starting Pirates Prospects, Tim worked with AccuScore.com, providing MLB, NHL, and NFL coverage to various national media outlets, including ESPN Insider, USA Today, Yahoo Sports, and the Wall Street Journal. He also writes the annual Prospect Guide, which is sold through the site. Tim lives in Bradenton, where he provides live coverage all year of Spring Training, mini camp, instructs, the Bradenton Marauders, and the GCL Pirates.

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