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Revisiting the Uncertainty of Outcome Hypothesis and the Loss Aversion Hypothesis in the National Basketball Association: Adding a Predicted Game Quality Perspective

Author

Listed:
  • Moonsup Hyun
  • Gareth J. Jones
  • Wonsok (Frank) Jee
  • Jeremy S. Jordan
  • James Du
  • Yohan Lee
Abstract
The unparalleled popularity of major professional sports leagues in the United States has led to numerous sold-out events, regardless of the uncertainty surrounding the game's outcome. This phenomenon prompts us to examine the relationship between outcome uncertainty and attendance, specifically in matchups between high-quality teams compared to games involving lower-quality teams in the National Basketball Association (NBA). Based on our analyses, we have discovered a notable distinction in the relationship between outcome uncertainty and attendance in high-quality games. When analyzing high-quality games, we observed a linear relationship between these two variables that was only marginally significant. Conversely, when exploring nonhigh-quality games, a U-shaped relationship emerged between outcome uncertainty and attendance. While the attendance of nonhigh-quality games was influenced by varying levels of uncertainty, high-quality games attracted fans irrespective of the outcome uncertainty. This research provides valuable insights into the factors that contribute to the popularity and attendance of NBA games.

Suggested Citation

  • Moonsup Hyun & Gareth J. Jones & Wonsok (Frank) Jee & Jeremy S. Jordan & James Du & Yohan Lee, 2023. "Revisiting the Uncertainty of Outcome Hypothesis and the Loss Aversion Hypothesis in the National Basketball Association: Adding a Predicted Game Quality Perspective," Journal of Sports Economics, , vol. 24(8), pages 1076-1096, December.
    • Handle: RePEc:sae:jospec:v:24:y:2023:i:8:p:1076-1096
    DOI: 10.1177/15270025231197427
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    References listed on IDEAS

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