This study uses a travel-cost model to analyse the attendance impacts on Major League Baseball (MLB) of the closest substitute MLB team. It is found that the closer two teams are, the lower attendance is at each team relative to two teams that are farther apart. In addition, when a new team moves into the area of an existing team, there is an additional initial reduction in attendance for the incumbent team. This has implications for actions aimed at changing the number of teams in MLB either by contraction or by possible antitrust approaches that would increase the number of teams, especially in megalopolis markets. Further, and consistent with past demand studies, pricing is in the inelastic portion of gate demand and fan loyalty is a significant contributor to the estimation of gate attendance.
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Article provided by Taylor and Francis Journals in its journal Applied Economics.
Volume (Year): 36 (2004) Issue (Month): 19 (September) Pages: 2117-2124 Download reference. The following formats are available: HTML,
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