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Novelty Effects Of New Facilities On Attendance At Professional Sporting Events

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Author Info
DENNIS COATES
BRAD R. HUMPHREYS

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Abstract

We investigate the effect of new facilities on attendance in professional baseball, basketball, and football from 1969 to 2001. We find a strong, persistent effect in baseball and basketball, and little effect in football. Size and duration estimates imply that baseball teams sell 2,500,794 additional tickets over the first eight seasons, basketball teams 293,878 over the first nine seasons, and football teams 137,792 over the first five seasons, implying an increase in revenues that could defray public subsidies that state and local governments provide for new sports construction projects. Rough calculations suggest that stadium subsidies are an inefficient method of subsidizing professional sports franchises. (JEL "R39", "D12", "L83") Copyright 2005 Western Economic Association International.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1093/cep-byi033
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Publisher Info
Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 23 (2005)
Issue (Month): 3 (07)
Pages: 436-455
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Handle: RePEc:bla:coecpo:v:23:y:2005:i:3:p:436-455

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dennis Coates & Thane Harrison, 2004. "Baseball Strikes and the Demand for Attendance," UMBC Economics Department Working Papers 04-101, UMBC Department of Economics. [Downloadable!]
  2. Eckard, E Woodrow, 2001. "Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention," Economic Inquiry, Oxford University Press, vol. 39(3), pages 430-43, July.
  3. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March. [Downloadable!] (restricted)
  4. Kahane, Leo & Shmanske, Stephen, 1997. "Team Roster Turnover and Attendance in Major League Baseball," Applied Economics, Taylor and Francis Journals, vol. 29(4), pages 425-31, April. [Downloadable!] (restricted)
  5. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 737-747, January.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Dennis Coates & Brad R. Humphreys, 2008. "The Effect of On-Field Success on Stock Prices: Evidence from Nippon Professional Baseball," Working Papers 0805, International Association of Sports Economists. [Downloadable!]
  2. Rob Simmons & Babatunde Buraimo, 2006. "Market size and attendance in English Premier League football," Working Papers 003092, Lancaster University Management School, Economics Department. [Downloadable!]
  3. Craig Depken, 2007. "Another look at anti-scalping laws: Theory and evidence," Public Choice, Springer, vol. 130(1), pages 55-77, January. [Downloadable!] (restricted)
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