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Dynasties versus pennant races: competitive balance in major league baseball

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Author Info

  • Anthony C. Krautmann

    (Department of Economics, DePaul University, Chicago, IL 60604, USA)

  • Lawrence Hadley

    (Department of Economics, University of Dayton, Dayton, OH 45469, USA)

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    Abstract

    This paper examines the impact of competitive balance on attendance in Major League Baseball. Two types of competitive balance are included in a single-equation model of attendance: intra-seasonal balance and inter-seasonal balance. The metric used to calibrate the first is the ratio of the actual standard deviation of season win percents divided by the ideal standard deviation. Inter-seasonal balance is calibrated with Markov transitional probabilities of teams making the playoffs in consecutive seasons. The results indicate that intra-seasonal balance does not significantly impact attendance, and that inter-seasonal balance has significant but small impacts on attendance in the American League. Copyright © 2006 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/mde.1260
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

    Volume (Year): 27 (2006)
    Issue (Month): 4 ()
    Pages: 287-292

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    Handle: RePEc:wly:mgtdec:v:27:y:2006:i:4:p:287-292

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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    1. Martin Schmidt & David Berri, 2002. "Competitive Balance and Market Size in Major League Baseball: A Response to Baseball's Blue Ribbon Panel," Review of Industrial Organization, Springer, vol. 21(1), pages 41-54, August.
    2. Young Hoon Lee & Rodney Fort, 2005. "Structural Change in MLB Competitive Balance: The Depression, Team Location, and Integration," Economic Inquiry, Western Economic Association International, vol. 43(1), pages 158-169, January.
    3. Craig Depken, 1999. "Free-Agency and the Competitiveness of Major League Baseball," Review of Industrial Organization, Springer, vol. 14(3), pages 205-217, May.
    4. Joshua Utt & Rodney Fort, 2002. "Pitfalls to Measuring Competitive Balance With Gini Coefficients," Journal of Sports Economics, , vol. 3(4), pages 367-373, November.
    5. Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 133-148, May.
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    Cited by:
    1. Jeroen Schokkaert & Johan Swinnen, 2013. "European Cup football has experienced a major change in format with the introduction of the Champions League in 1992 and a major change in admission rules with direct qualification for multiple teams ," LICOS Discussion Papers 32913, LICOS - Centre for Institutions and Economic Performance, KU Leuven.

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