B. David Tyler
Craig A. Morehead
Joe Cobbs
and Timothy D. DeSchriver

Although the concept of rivalry is widely recognized as a contributing factor to consumer demand for sporting events, who constitutes a rival and to what degree rivalry influences attendance remains vague. Previous demand models consistently included rivalry as an explanatory variable but represented rivalry in inconsistent ways that often violated rivalry’s core properties (i.e., non-exclusive, continuous in scale, and bidirectional). This study reviews past specifications for rivalry and tests multiple rivalry variables, including a 100-point allocation measure that conforms to rivalry’s...Read more

Nola Agha and Marijke Taks

In response to the increasing debate on the relative worth of small events compared to large events, we create a theoretical model to determine whether smaller events are more likely to create positive economic impact. First, event size and city size are redefined as continuums of resources. The concepts of event resource demand (ERD) and city resource supply (CRS) are introduced, allowing for a joint analysis of supply and demand. When local economic conditions are brought into the analysis, the framework determines how a city resource deficiency or surplus affects the economic impact of...Read more

Nicholas M. Watanabe

Sport demand literature notes multiple sources of demand for a sport product. Two forms of direct demand come in the form of live attendance by patrons and purchases of pay-per-view (PPV) to watch sporting contest through a television set (Borland & Macdonald, 2003). That is, attendance and PPV purchases are both direct consumption of the sporting product. Recent theoretical discussion has noted the importance understanding both live attendees and television viewers of sport events in order for organizations to behave more strategically (Budzinski & Satzer, 2011). This study...Read more

David E. Kalist

 In the post-9/11 world, managers and owners of large public venues face new challenges. Since stadiums are potential targets of terrorist attacks, sports venues may experience falling ticket sales as the public becomes more concerned about the threat of terrorism. This paper estimates the risk to business disruptions by examining how baseball fans respond to increased terror-alert levels by the U.S. Homeland Security Advisory System. Using game-day attendance for each Major League Baseball team for the period 2002-03, the results indicate that during the early days of the...Read more

Alan L. Morse
Stephen L. Shapiro
Chad D. McEvoy
Daniel A. Rascher

The purpose of this study was to examine the effects of roster turnover on demand in the National Basketball Association (NBA) over a five-year period (2000–2005) and compare these results to previous research on turnover in Major League Baseball (MLB). A censored regression equation was developed to examine the relationship between roster turnover and season attendance, while controlling for other potentially confounding variables in the model. The censored regression model was used to account for the capacity constraints by forecasting the level of demand beyond capacity using...Read more

Daniel A. Rascher
John Paul G. Solmes

The National Basketball Association claims to sell entertainment. Part of that entertainment is close, competitive contests with uncertain outcomes. However, hometown fans want the home team to win. Hence, the optimal probability that the home team wins a game, from the perspective of maximizing demand, lays somewhere between 0.5 and 1.0. Using data from individual games for the 2001-02 season, this optimal probability was estimated to be approximately 0.66. Fans want their home team to have about twice the chance to win a game as the visiting team.Read more