A simple model of Kawhi Leonard’s indecision

As a free agent, he is being courted by his current team, the Toronto Raptors, as well as the Los Angeles Clippers and the Los Angeles Lakers (now the team of LeBron James). And the internet is making jokes about him taking so much time for the decision.  In Toronto, helicopters are following him around.

Due to the salary cap and related regulations, there is no uncertainty about how much money each team can offer.  The offer that can vary the most in overall quality, however, is the one from the Los Angeles Lakers.  For instance, if Kawhi is playing in Los Angeles with LeBron James, he might receive more endorsements and movie contracts (or not).  If he is waiting on the decision at all, that is a sign he is at least sampling the Laker option, and seeing how much extra off-court value it can bring him.  So the existence of some waiting favors the chance he goes to the Lakers.  That said, if he is waiting a long time to see how good the Laker option is, that is a sign the Laker option is not obviously crossing a threshold and thus he might stay with Toronto.

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