The Impact of Postseason Restructuring on the Competitive Balance and Fan Demand in Major League Baseball
AbstractWe analyzed issues of playoff uncertainty (PU) by examining competitive balance and outcome uncertainty. Specifically, we (i) developed an alternative measure of PU, (ii) analyzed the relationship between PU and postseason structure in Major League Baseball (MLB), and (iii) tested the PU of the outcome hypothesis using our PU measure. The results provide empirical evidence that postseason restructurings in 1969 and 1995 enhanced the PU significantly and had positive effects on fan demand for MLB. This implies that the league office can partly control PU by revising the league structure and thus increasing fan demand.
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Bibliographic InfoPaper provided by Research Institute for Market Economy, Sogang University in its series Working Papers with number 0901.
Length: 36 pages
Date of creation: 2009
Date of revision: 2009
competitive balance; playoff uncertainty; uncertainty of outcome hypothesis; fan demand; major league baseball;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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