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Why Are Americans Addicted To Baseball? An Empirical Analysis Of Fandom In Korea And The United States

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  • YOUNG H. LEE
  • TRENTON G. SMITH

Abstract

Theories of rational addiction posit that certain habit‐forming goods—characterized by an increasing marginal utility of consumption—generate predictable dynamic patterns of consumer behavior. It has been suggested that attendance at sporting events represents an example of such a good, as evidenced by the pricing strategies of commercial sports interests. In this essay, we provide new evidence in support of rational addiction for the case of Major League Baseball but fail to find such support in data from the Korean Professional Baseball League. We then review the scientific literature on sports fans from the perspective of human behavioral ecology and propose a theory of endogenous habit formation among sports fans that could explain our findings. (JEL C32, D83, D87, D91, L83)

Suggested Citation

  • Young H. Lee & Trenton G. Smith, 2008. "Why Are Americans Addicted To Baseball? An Empirical Analysis Of Fandom In Korea And The United States," Contemporary Economic Policy, Western Economic Association International, vol. 26(1), pages 32-48, January.
    • Handle: RePEc:bla:coecpo:v:26:y:2008:i:1:p:32-48
    DOI: 10.1111/j.1465-7287.2007.00052.x
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    Cited by:

    1. Hayley Jang & Young Hoon Lee, 2016. "A Business Analysis of Asian Baseball Leagues," Asian Economic Policy Review, Japan Center for Economic Research, vol. 11(1), pages 95-112, January.
    2. Dong C. Won & Young H. Lee, 2008. "Optimal dynamic pricing for sports games with habitual attendance," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 29(8), pages 639-655.
    3. Se-Hyuk Kim & James W Mjelde & Tae-Kyun Kim & Choong-Ki Lee & Byunggil Chun, 2023. "Willingness to pay for attributes of Templestay and implications on marginal utility of different meditation forms," Tourism Economics, , vol. 29(4), pages 1100-1120, June.
    4. Qi Ge & Brad R. Humphreys & Kun Zhou, 2020. "Are Fair Weather Fans Affected by Weather? Rainfall, Habit Formation, and Live Game Attendance," Journal of Sports Economics, , vol. 21(3), pages 304-322, April.
    5. Seth R. Gitter & Thomas A. Rhoads, 2011. "Top Prospects and Minor League Baseball Attendance," Journal of Sports Economics, , vol. 12(3), pages 341-351, June.
    6. Rodney Fort & Young Hoon Lee & Taeyeon Oh, 2019. "Quantile Insights on Market Structure and Worker Salaries: The Case of Major League Baseball," Journal of Sports Economics, , vol. 20(8), pages 1066-1087, December.
    7. Young Hoon Lee, 2013. "Estimation of temporal variations in fan loyalty: application of multi-factor models," Chapters, in: Plácido Rodríguez & Stefan Késenne & Jaume García (ed.), The Econometrics of Sport, chapter 8, pages 135-153, Edward Elgar Publishing.
    8. Scott Tainsky & Jason A. Winfree, 2010. "Discrimination and Demand: The Effect of International Players on Attendance in Major League Baseball," Social Science Quarterly, Southwestern Social Science Association, vol. 91(1), pages 117-128, March.
    9. Smith, Trenton G., 2023. "Endocrine state is the physical manifestation of subjective beliefs," Journal of Economic Psychology, Elsevier, vol. 96(C).
    10. Yung-Chin Chiu & Chen-Kang Chang, 2022. "Major League Baseball during the COVID-19 pandemic: does a lack of spectators affect home advantage?," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-6, December.
    11. Jye-Shyan Wang & Chih-Fu Cheng & Wen-Jhan Jane, 2014. "Buying success or redistributing payment: bidirectional causality in Korean Professional Baseball League," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 4(2), pages 247-260, December.

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    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D87 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Neuroeconomics
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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