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If you play well they will come-and vice versa: bidirectional causality in major-league baseball

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Author Info
Ira Horowitz (University of Florida, FL, USA)
Abstract

The Granger-causality test is applied to the annual attendance and win-percentage data for 29 major-league teams. It is shown that bidirectional causality exists for these teams and that there are some essential differences between the original 10 of 16 franchises that comprised the majors in 1903 and the six that relocated between 1953 and 1961. Some differences and some similarities are also seen in the parameter estimates for both blocs of teams, the relocated teams, and seven long-lived expansion franchises. Finally, the parameter estimates are manipulated to yield noise-free equilibrium estimates for both attendance and performance. In tandem, these two sets of estimates provide fodder for speculation as to the futures of each of the extant 23 franchises considered here. Copyright © 2007 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1308
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Publisher Info
Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 28 (2007)
Issue (Month): 2 ()
Pages: 93-105
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:wly:mgtdec:v:28:y:2007:i:2:p:93-105

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

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Whitney, James D, 1988. "Winning Games versus Winning Championships: The Economics of Fan Interest and Team Performance," Economic Inquiry, Oxford University Press, vol. 26(4), pages 703-24, October.
  2. Dennis Coates & Thane Harrison, 2004. "Baseball Strikes and the Demand for Attendance," UMBC Economics Department Working Papers 04-101, UMBC Department of Economics. [Downloadable!]
  3. Nicholas Apergis, 2000. "Black Market Rates and Official Rates in Armenia: Evidence from Causality Tests in Alternative Regimes," Eastern Economic Journal, Eastern Economic Association, vol. 26(3), pages 335-344, Summer. [Downloadable!]
  4. Daniel R. Marburger, 1997. "Optimal ticket pricing for performance goods," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(5), pages 375-381.
  5. John Thornton, 2001. "Population Growth and Economic Growth: Long-Run Evidence from Latin America," Southern Economic Journal, Southern Economic Association, vol. 68(2), pages 464-468, October.
  6. Dobson, Stephen M & Goddard, John A, 1998. "Performance and Revenue in Professional League Football: Evidence from Granger Causality Tests," Applied Economics, Taylor and Francis Journals, vol. 30(12), pages 1641-51, December. [Downloadable!] (restricted)
  7. Martin B. Schmidt & David J. Berri, 2004. "The Impact of Labor Strikes on Consumer Demand: An Application to Professional Sports," American Economic Review, American Economic Association, vol. 94(1), pages 344-357, March. [Downloadable!]
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