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Week to Week Attendance and Competitive Balance in the National Football League

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  • Brad R. Humphreys

    ()
    (University of Alberta)

  • Yang Seung Lee

    ()
    (University of Alberta)

Abstract

We develop a quality adjusted professional sports franchise price index for North America based on the repeat sale method and a hybrid method originally applied to house prices. For the repeat sale method, the index reflects trends in the general price of franchises holding market, facility and team quality constant. The constant quality constant assumption in the repeat sale model may affect the price index, so we also use a hybrid model as an alternative. The repeat sale method price index exhibits considerable volatility but no upward trend over time, unlike previous quality adjusted price indexes based on hedonic models. The lack of an upward trend in the index indicates that franchise quality drives observed increases in prices over the past 40 years. The hybrid method exhibits price index shows a steady increase beginning in about 1990. This difference can be explained by changes in market population and facility characteristics.

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Bibliographic Info

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

Volume (Year): 5 (2010)
Issue (Month): 4 (November)
Pages: 280-295

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Handle: RePEc:jsf:intjsf:v:5:y:2010:i:4:p:280-295

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Related research

Keywords: repeat sales method; hybrid method; sports franchise; quality adjusted price index;

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Cited by:
  1. Coates, Dennis & Humphreys, Brad & Zhou, Li, 2012. "Outcome Uncertainty, Reference-Dependent Preferences and Live Game Attendance," Working Papers 2012-7, University of Alberta, Department of Economics.
  2. Coates, Dennis & Humphreys, Brad, 2011. "Game Attendance and Competitive Balance in the National Hockey League," Working Papers 2011-8, University of Alberta, Department of Economics.
  3. Sung Il Hong & Michael Mondello & Dennis Coates, 2011. "An Examination of the Effects of the Recent Economic Crisis on Major League Baseball (MLB) Attendance Demand," Working Papers, International Association of Sports Economists;North American Association of Sports Economists 1123, International Association of Sports Economists;North American Association of Sports Economists.
  4. Pawlowski, Tim & Budzinski, Oliver, 2014. "Competitive balance and attention level effects: Theoretical considerations and preliminary evidence," Ilmenau Economics Discussion Papers 84, Ilmenau University of Technology, Institute of Economics.

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