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Competitive Balance and Attendance in Major League Baseball: An Empirical Test of the Uncertainty of Outcome Hypothesis

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Author Info

  • Babatunde Buraimo

    (University of Central Lancashire)

  • Rob Simmons

    ()
    (Lancaster University)

Abstract

After controlling for a number of plausible influences on matchday attendance in the English Premier League, and with appropriate recognition of the censoring problem in stadium capacities, we find clear evidence that an increase in uncertainty of outcome is associated with reduced gate attendance. The conventional uncertainty of outcome hypothesis proposes precisely the opposite effect. We interpret this as suggesting that fans at EPL games, who are predominantly supporters of the home team, prefer to see their team play a much inferior team (and beat that team) rather than attend a game that is predicted to be close in score. Essentially, home fans prefer to see their team win rather than watch a draw or see the home team defeated.

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Bibliographic Info

Article provided by Fitness Information Technology in its journal International Journal of Sport Finance.

Volume (Year): 3 (2008)
Issue (Month): 3 (August)
Pages: 146-155

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Handle: RePEc:jsf:intjsf:v:3:y:2008:i:3:p:146-155

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Related research

Keywords: attendance; outcome uncertainty; tobit;

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Cited by:
  1. Helmut Dietl & Markus Lang & Stephan Werner, 2008. "The Effect of Luxury Taxes on Competitive Balance, Club Profits, and Social Welfare in Sports Leagues," Working Papers 0023, University of Zurich, Center for Research in Sports Administration (CRSA), revised Jul 2009.

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