Novelty Effects of New Facilities on Attendance at Professional Sporting Events
AbstractWe investigate the possibility that new facilities affect attendance - the "novelty effect" - in professional baseball, basketball, and football from 1969-2001 by estimating the parameters of a reduced form attendance model. Our results indicate a strong, persistent novelty effect in baseball and basketball and little or no novelty effect in football. Our estimates of size and duration of the novelty effect imply that, in a new facility, at a minimum, a baseball team would sell an additional 2,561,702 tickets over the first eight seasons, a basketball team 446,936 over the first nine seasons, and a football team 163,436 over the first five seasons. This increase in attendance also suggests a corresponding increase in revenues that could be tapped to help defray the large public subsidies that state and local governments frequently provide to new stadium and arena construction projects.
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Bibliographic InfoPaper provided by UMBC Department of Economics in its series UMBC Economics Department Working Papers with number 03-101.
Length: 19 pages
Date of creation: Aug 2003
Date of revision:
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Postal: UMBC Department of Economics 1000 Hilltop Circle Baltimore MD 21250, USA
Web page: http://www.umbc.edu/economics
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Other versions of this item:
- Dennis Coates & Brad R. Humphreys, 2005. "Novelty Effects Of New Facilities On Attendance At Professional Sporting Events," Contemporary Economic Policy, Western Economic Association International, Western Economic Association International, vol. 23(3), pages 436-455, 07.
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
- R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
This paper has been announced in the following NEP Reports:
- NEP-CUL-2003-09-14 (Cultural Economics)
- NEP-GEO-2003-09-14 (Economic Geography)
- NEP-SPO-2003-09-14 (Sports & Economics)
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.:
- Eckard, E Woodrow, 2001. "Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 39(3), pages 430-43, July.
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Journal of Sports Economics, ,
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UMBC Economics Department Working Papers, UMBC Department of Economics
04-101, UMBC Department of Economics.
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- More New Stadiums
by jamesreade in International Journal of Sport Finance Blog on 2009-07-28 03:56:09
- Rodney J. Paul & Andrew P. Weinbach, 2013. "The Yankee Effect in Minor League Baseball," New York Economic Review, New York State Economics Association (NYSEA), New York State Economics Association (NYSEA), vol. 44(1), pages 32-42.
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- Dennis Coates & Brad R. Humphreys, 2008. "The Effect of On-Field Success on Stock Prices: Evidence from Nippon Professional Baseball," Working Papers, International Association of Sports Economists;North American Association of Sports Economists 0805, International Association of Sports Economists;North American Association of Sports Economists.
- Craig Depken, 2007. "Another look at anti-scalping laws: Theory and evidence," Public Choice, Springer, Springer, vol. 130(1), pages 55-77, January.
- Sung Il Hong & Michael Mondello & Dennis Coates, 2011. "An Examination of the Effects of the Recent Economic Crisis on Major League Baseball (MLB) Attendance Demand," Working Papers, International Association of Sports Economists;North American Association of Sports Economists 1123, International Association of Sports Economists;North American Association of Sports Economists.
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- B Buraimo & R Simmons, 2006. "Market size and attendance in English Premier League football," Working Papers 574562, Lancaster University Management School, Economics Department.
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