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Comparison of television and gate demand in the National Basketball Association

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  • Kevin Mongeon
  • Jason Winfree

Abstract

► This paper uses four linear regressions to analyze the differences between the determinants of economic demand for television audiences and gate attendance. ► We find that fans who watch the games on television are 4.5 times more sensitive to winning and that the demand for television audiences is decreased more by direct substitutes compared to gate demand. ► From our findings, particularly regarding winning and substitutes, enhanced models describing league and team behavior are prescribed.This study analyzes the differences between the determinants of economic demand for television audiences and gate attendance. Due to data availability problems, there are few studies focused on television demand for North American sports leagues, and most of those studies do not compare the differences between television and live game audiences. The primary determinants of demand that are compared are income, team quality, and both direct and indirect substitutes. Using data from the National Basketball Association (NBA), we find that fans who attend games live are inherently different from fans who watch games on television. Although insignificant to gate attendance, income is an inferior good to television audiences. Fans who watch the games on television are 4.5 times more sensitive to winning. The demand for television audiences is decreased more by direct substitutes compared to gate demand. However, demand for gate attendance is decreased more by indirect substitutes compared to television demand.

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  • Kevin Mongeon & Jason Winfree, 2012. "Comparison of television and gate demand in the National Basketball Association," Sport Management Review, Taylor & Francis Journals, vol. 15(1), pages 72-79, January.
    • Handle: RePEc:taf:rsmrxx:v:15:y:2012:i:1:p:72-79
    DOI: 10.1016/j.smr.2011.09.001
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