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The Impact of Postseason Restructuring on the Competitive Balance and Fan Demand in Major League Baseball

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Author Info

  • Young Hoon Lee

    ()
    (Department of Economics, Sogang University, Seoul)

Abstract

We 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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File URL: ftp://163.239.165.41/RePEc/sgo/wpaper/LYH_RIME_2009-01.pdf
File Function: Second version, 2009
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Bibliographic Info

Paper provided by Research Institute for Market Economy, Sogang University in its series Working Papers with number 0901.

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Length: 36 pages
Date of creation: 2009
Date of revision: 2009
Handle: RePEc:sgo:wpaper:0901

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Postal: 1 Sinsu-dong, Mapo-gu, Seoul 121-742
Phone: 82-2-705-8226
Fax: 82-2-705-8226
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Web page: http://home.sogang.ac.kr/sites/sgrime
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Related research

Keywords: competitive balance; playoff uncertainty; uncertainty of outcome hypothesis; fan demand; major league baseball;

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References

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  1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181, September.
  2. Craig A. Depken II, 2000. "Fan Loyalty and Stadium Funding in Professional Baseball," Journal of Sports Economics, , vol. 1(2), pages 124-138, May.
  3. 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.
  4. Ahn, Seung Chan & Hoon Lee, Young & Schmidt, Peter, 2001. "GMM estimation of linear panel data models with time-varying individual effects," Journal of Econometrics, Elsevier, vol. 101(2), pages 219-255, April.
  5. Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 133-148, May.
  6. Leo Kahane & Stephen Shmanske, 1997. "Team roster turnover and attendance in major league baseball," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 425-431.
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Cited by:
  1. Young Hoon Lee, 2009. "Estimation of Temporal Variations in Fan Loyalty: Application of Multi-Factor Models," Working Papers 0902, Research Institute for Market Economy, Sogang University, revised 2009.
  2. P. Dorian Owen, 2013. "Measurement of Competitive Balance and Uncertainty of Outcome," Working Papers 1311, University of Otago, Department of Economics, revised Aug 2013.
  3. Young Hoon Lee & Rodney Fort, 2011. "Competitive Balance:Time Series Lessons from the English Premier League," Working Papers 1102, Research Institute for Market Economy, Sogang University, revised Jun 2011.
  4. Scott Tainsky & Jason Winfree, 2010. "Short-Run Demand and Uncertainty of Outcome in Major League Baseball," Review of Industrial Organization, Springer, vol. 37(3), pages 197-214, November.

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