[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/spe/wpaper/1123.html
   My bibliography  Save this paper

An Examination of the Effects of the Recent Economic Crisis on Major League Baseball (MLB) Attendance Demand

Author

Listed:
  • Sung Il Hong

    (Florida State University)

  • Michael Mondello

    (Florida State University)

  • Dennis Coates

    (Department of Economics, University of Maryland, Baltimore County)

Abstract
We investigate the effects of the recent economic crisis on Major League Baseball (MLB) attendance during the 2008 and 2009 seasons. To elaborately capture the impact of economic circumstances, we adopt the composite index of coincident indicators released by Federal Reserve Bank of Philadelphia. Major advantages of the coincident indexes are the ability to specify monthly changes in state economic conditions as well as combining the information from several economic indicators. The estimates for the coincident indicators suggests the economic downturn drives a fall in attendance of about 6%, compared to the reported decline of 6.77%. The success of the composite index in explaining the impact of the recent economic crisis on attendance in MLB suggests the indicator is a viable proxy for income in game attendance demand studies.

Suggested Citation

  • Sung Il Hong & Michael Mondello & Dennis Coates, 2011. "An Examination of the Effects of the Recent Economic Crisis on Major League Baseball (MLB) Attendance Demand," Working Papers 1123, International Association of Sports Economists;North American Association of Sports Economists.
    • Handle: RePEc:spe:wpaper:1123
    as

    Download full text from publisher

    File URL: http://college.holycross.edu/RePEc/spe/HongMondelloCoates_MLBAttendance.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 478-502, Winter.
    2. Dennis Coates & Brad R. Humphreys, 2005. "Novelty Effects Of New Facilities On Attendance At Professional Sporting Events," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 436-455, July.
    3. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64(3), pages 242-242.
    4. Leif Brandes & Egon Franck & Stephan Nuesch, 2006. "Local Heroes and Superstars - An Empirical Analysis of Star Attraction in German Soccer," Working Papers 0046, University of Zurich, Institute for Strategy and Business Economics (ISU), revised 2007.
    5. Dennis Coates & Thane Harrison, 2005. "Baseball Strikes and the Demand for Attendance," Journal of Sports Economics, , vol. 6(3), pages 282-302, August.
    6. Arthur F. Burns & Wesley C. Mitchell, 1946. "Measuring Business Cycles," NBER Books, National Bureau of Economic Research, Inc, number burn46-1.
    7. E. Woodrow Eckard, 2001. "Baseball’s Blue Ribbon Economic Report," Journal of Sports Economics, , vol. 2(3), pages 213-227, August.
    8. Leif Brandes & Egon Franck & Stephan Nüesch, 2008. "Local Heroes and Superstars," Journal of Sports Economics, , vol. 9(3), pages 266-286, June.
    9. John C. Leadley & Zenon X. Zygmont, 2006. "When Is the Honeymoon Over? National Hockey League Attendance, 1970­2003," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 213-232, June.
    10. Katona, George, 1974. "Psychology and Consumer Economics," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 1(1), pages 1-8, June.
    11. James W. Meehan Jr. & Randy A. Nelson & Thomas V. Richardson, 2007. "Competitive Balance and Game Attendance in Major League Baseball," Journal of Sports Economics, , vol. 8(6), pages 563-580, December.
    12. James H. Stock & Mark W. Watson, 1989. "New Indexes of Coincident and Leading Economic Indicators," NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, pages 351-409, National Bureau of Economic Research, Inc.
    13. David J. Berri & Martin B. Schmidt, 2006. "On the Road With the National Basketball Association's Superstar Externality," Journal of Sports Economics, , vol. 7(4), pages 347-358, November.
    14. Thomas C. Boyd & Timothy C. Krehbiel, 2006. "An Analysis of the Effects of Specific Promotion Types on Attendance at Major League Baseball Games," American Journal of Business, Emerald Group Publishing, vol. 21(2), pages 21-32.
    15. Theodore M. Crone & Alan Clayton-Matthews, 2005. "Consistent Economic Indexes for the 50 States," The Review of Economics and Statistics, MIT Press, vol. 87(4), pages 593-603, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Coates, Dennis & Humphreys, Brad & Zhou, Li, 2012. "Outcome Uncertainty, Reference-Dependent Preferences and Live Game Attendance," Working Papers 2012-7, University of Alberta, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wen-Jhan Jane, 2014. "The Relationship Between Outcome Uncertainties and Match Attendance: New Evidence in the National Basketball Association," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(2), pages 177-200, September.
    2. Brian Mills & Rodney Fort, 2014. "League-Level Attendance And Outcome Uncertainty In U.S. Pro Sports Leagues," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 205-218, January.
    3. Liam J. A. Lenten, 2017. "A Formal Test for Asymmetry in the Uncertainty of Outcome Hypothesis," Journal of Sports Economics, , vol. 18(3), pages 253-270, April.
    4. Brad R. Humphreys & Candon Johnson, 2020. "The Effect of Superstars on Game Attendance: Evidence From the NBA," Journal of Sports Economics, , vol. 21(2), pages 152-175, February.
    5. Budzinski, Oliver & Feddersen, Arne & Kunz-Kaltenhäuser, Philipp, 2022. "Demand for TV broadcasts of UEFA Champions League games in Danish television - The impact of uncertainty of outcome, stardom, and local heroes," Ilmenau Economics Discussion Papers 165, Ilmenau University of Technology, Institute of Economics.
    6. Hojun Sung & Brian M. Mills, 2018. "Estimation of game-level attendance in major league soccer: Outcome uncertainty and absolute quality considerations," Sport Management Review, Taylor & Francis Journals, vol. 21(5), pages 519-532, December.
    7. Sang Hun Sung & Doo-Seung Hong & Soo Young Sul, 2020. "How We Can Enhance Spectator Attendance for the Sustainable Development of Sport in the Era of Uncertainty: A Re-Examination of Competitive Balance," Sustainability, MDPI, vol. 12(17), pages 1-15, August.
    8. Brian M. Mills & Rodney Fort, 2018. "Team-Level Time Series Analysis in MLB, the NBA, and the NHL," Journal of Sports Economics, , vol. 19(7), pages 911-933, October.
    9. Budzinski, Oliver & Feddersen, Arne, 2015. "Grundlagen der Sportnachfrage: Theorie und Empirie der Einflussfaktoren auf die Zuschauernachfrage," Ilmenau Economics Discussion Papers 94, Ilmenau University of Technology, Institute of Economics.
    10. Wen-Jhan Jane, 2016. "The Effect of Star Quality on Attendance Demand," Journal of Sports Economics, , vol. 17(4), pages 396-417, May.
    11. Ahking, Francis W., 2014. "Measuring U.S. business cycles: A comparison of two methods and two indicators of economic activities," Journal of Economic and Social Measurement, IOS Press, issue 4, pages 199-216.
    12. Schreyer & Torgler Benno & Schmidt Sascha L., 2018. "Game Outcome Uncertainty and Television Audience Demand: New Evidence from German Football," German Economic Review, De Gruyter, vol. 19(2), pages 140-161, May.
    13. Scott D. Grimshaw & Jeffrey S. Larson, 2021. "Effect of Star Power on NBA All-Star Game TV Audience," Journal of Sports Economics, , vol. 22(2), pages 139-163, February.
    14. Scott Tainsky & Jason Winfree, 2010. "Short-Run Demand and Uncertainty of Outcome in Major League Baseball," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 37(3), pages 197-214, November.
    15. Stock, J.H. & Watson, M.W., 2016. "Dynamic Factor Models, Factor-Augmented Vector Autoregressions, and Structural Vector Autoregressions in Macroeconomics," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 415-525, Elsevier.
    16. Arias, Maria A. & Gascon, Charles S. & Rapach, David E., 2016. "Metro business cycles," Journal of Urban Economics, Elsevier, vol. 94(C), pages 90-108.
    17. Hojun Sung & Brian M. Mills & Scott Tainsky, 2017. "From schadenfreude to mitfreude? Estimating viewership loss and rivalrous relationships in otherwise neutral markets," Sport Management Review, Taylor & Francis Journals, vol. 20(2), pages 159-169, April.
    18. Robert J. Lemke & Matthew Leonard & Kelebogile Tlhokwane, 2010. "Estimating Attendance at Major League Baseball Games for the 2007 Season," Journal of Sports Economics, , vol. 11(3), pages 316-348, June.
    19. Dominik Schreyer & Sascha L. Schmidt & Benno Torgler, 2017. "Game Outcome Uncertainty and the Demand for International Football Games: Evidence From the German TV Market," Journal of Media Economics, Taylor & Francis Journals, vol. 30(1), pages 31-45, January.
    20. Besters, Lucas, 2018. "Economics of professional football," Other publications TiSEM d9e6b9b7-a17b-4665-9cca-1, Tilburg University, School of Economics and Management.

    More about this item

    Keywords

    composite index of coincident indicators; economic downturn; attendance; MLB;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spe:wpaper:1123. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Victor Matheson (email available below). General contact details of provider: https://edirc.repec.org/data/iaseeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.