FiT Publishing

Giveaways such as jerseys, caps, or bobbleheads are part of a host of promotions used to entice fans to purchase tickets and attend live events, particularly in sports. Bobbleheads have often been viewed as the bellwether giveaway in demand-side analytical studies as they are common across sport, league, and team and are viewed as highly prized collectable items. Empiricists typically code promotions as binary variables to measure the impact these additional perks have on attendance, yet each bobblehead event features a distinct figurine distinguished by several previously unexplored...Read more

Reported attendance for most sport events is based on tickets disseminated, not actual number of spectators who physically enter the venue. Yet nearly all live sport event demand studies are based on reported attendance rather than the actual attendance. The current study examines multiple measures of home game attendance for NCAA Division I college football programs as reported from both game box scores and post-event scanned ticket audits provided to The Wall Street Journal. Regression models are utilized to examine factors that have a statistically significant relationship with...Read more

This study tests the uncertainty of outcome hypothesis for single games and playoff appearances in the Korean Professional Baseball League from 2007 to 2015. Our panel data analysis shows that the difference in winning percentages between two teams and playoff uncertainty based on games behind are important factors for increasing game attendance. This study supports the potential importance of analyzing daily game attendance of the literature on diverse sport leagues. It also presents implications for policymakers and league owners—which typically leverage teams as promotional instruments—...Read more

In recent years, the composition of revenue sources has changed substantially for professional football clubs, thereby leading to a significant dependency on broadcasting income. Accordingly, economists, traditionally more interested in the economic analysis of football stadium attendances, have begun turning their attention to the potential determinants of television audience demand in professional football. Despite this rapidly increasing interest of economists in exploring the determinants of football TV demand, there is, however, little empirical evidence on the stability of such...Read more

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

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

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

 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

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

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