Jye-Shyan Wang
Pei-Hsin Fang
and Tsong-Min Wu

This study analyzes wage discrimination in the Korean Baseball Organization (KBO). Ordinary least squares (OLS) regression analysis was used to analyze panel data covering 775 first-team baseball players, teams’ annual attendance, team records, and home city populations in the KBO from 2001 to 2010. The study results showed that wage discrimination based on nationality occurred in the KBO. Both foreign pitchers and foreign position players were paid significantly higher salaries than South Korean players with similar performance records. We also found that the number of foreign pitchers...Read more

Rodney J. Paul
Andrew P. Weinbach
Chris Weinbach

A study of the physics of baseball has shown that air density plays a significant role in the distance a batted baseball will travel. Air density is a function of altitude, temperature, humidity, and barometric pressure. This paper tests if air density impacts the totals market in Major League Baseball by influencing the number of runs in a game above and beyond the betting market total. Through regression analysis and betting simulations of the 2012 season, it is shown that air density has an inverse relationship with total runs scored and simple betting strategies are constructed that...Read more

Michael C. Davis
Craig Palsson
Joseph Price

In 2010, a plan to finance a new spring training stadium for the Cubs through a ticket surcharge on all games in the Cactus League was proposed. We find that the Cubs increase attendance when they are the away team by about 37%. Thus, the surcharge would be economically justified as long as the price elasticity of tickets is less than 0.32, which many prior studies find to be the case. This tax provides one of the few examples in which the cost of a subsidized stadium would be born primarily by the group that benefits the most from the arrival of the subsidized team.Read more

Wen-Jhan Jane
Nai-Fong Kuo
Jyun-Yi Wu
Sheng-Tung Chen

This paper investigates the determinants of game-day attendance in the Chinese Professional Baseball League (CPBL) from 2001 to 2007. We include measures of league-level uncertainty and game uncertainty for two rivals at the same time in a quantile regression model. The results support the hypothesis of outcome uncertainties. Closer wins by the competing teams within a league and a smaller gap in terms of the winning percentage between two teams induces more outcome uncertainty, and consequently leads to higher attendance. Moreover, the results of the quantile regression show that these...Read more

Rodney J. Paul
Andrew P. Weinbach
Richard Borghesi
Mark Wilson

Betting market odds for Major League Baseball are used to examine the level of uncertainty of outcome, an ex-ante form of competitive balance. The efficient markets hypothesis cannot be rejected for the years 1990-2006 in Major League Baseball. Therefore, the odds provide an ex-ante measure of the uncertainty of outcome of baseball games in the minds of fans and bettors. The odds for both the American and National Leagues were shown to increase during the 1990s, implying more certainty in the expected outcome of the game. Bettors and fans believed favorites in Major League Baseball were...Read more

Michael C. Davis

This study examines the importance of team success for attendance for Major League Baseball teams. Winning and attendance go together for most baseball teams, but the direction of causation is not obvious. Winning could lead to greater attendance as fans want to see a winner; an increase in attendance could lead to greater winning as teams have greater resources to spend on salaries. This study finds that the direction of causation runs from team success to greater attendance, and that a sudden increase in fans does not lead to additional winning in the future. A secondary result suggests...Read more

Bill Gerrard
Dennis Howard

Moneyball: The Art of Winning an Unfair Game (Lewis, 2003) is in essence the story of how the Oakland Athletics under its general manager, Billy Beane, have successfully challenged bigmarket rivals such as the New York Yankees in recent years yet have typically spent only around one third of the Yankees in player salaries.Read more

Patrick Walsh
Chih-I James Chien
Stephen D. Ross

Brand extensions are a popular strategy for professional sport teams as they can have a positive impact on team revenue and act as another touch point between teams and consumers. However, failed extensions could also potentially harm team brand equity. While research has begun to examine team brand extensions, no research has examined extensions from the perspective of the teams being an extension of a corporate brand. Therefore, this study examined the perceived fit between four professional baseball teams in Taiwan and the corporate parent brand which owned the teams, if team success...Read more

Brendan Dwyer
Stephen Shapiro
Joris Drayer

Fantasy sport consumer behavior research is a burgeoning area of inquiry as this growing segment of sport fans exhibits unconventional, yet robust media consumption habits. In addition, consumer motivation and market segmentation represent core principles within the study of marketing, yet the integration of these two essential concepts with regard to sport consumers is limited. The purpose of this study was to explore fantasy baseball motives, develop a motive-based taxonomy of users, and quantify the differences between segments through an examination of mediated sport consumption. An...Read more

Tony Lachowetz
Windy Dees
Sam Todd

It is less than a month to opening day as Bradley Dodson, General Manager, walks through Historic Grayson Stadium with John Simmons, the owner of the Savannah Sand Gnats. They survey the renovation of the stadium, comment on all the work that has been done, and contemplate what the future holds for the Sand Gnats. Dodson has been preparing for a staff meeting to discuss where the Sand Gnats stand and how to improve the organization. As he takes a seat in the stands and peers out to left field where the bleachers have been removed and the wall still needs to be finished, he considers “What...Read more

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