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Novelty Effects Of New Facilities On Attendance At Professional Sporting Events

Author

Listed:
  • DENNIS COATES
  • BRAD R. HUMPHREYS

Abstract

We investigate the effect of new facilities on attendance in professional baseball, basketball, and football from 1969 to 2001. We find a strong, persistent effect in baseball and basketball, and little effect in football. Size and duration estimates imply that baseball teams sell 2,500,794 additional tickets over the first eight seasons, basketball teams 293,878 over the first nine seasons, and football teams 137,792 over the first five seasons, implying an increase in revenues that could defray public subsidies that state and local governments provide for new sports construction projects. Rough calculations suggest that stadium subsidies are an inefficient method of subsidizing professional sports franchises. (JEL "R39", "D12", "L83") Copyright 2005 Western Economic Association International.

Suggested Citation

  • Dennis Coates & Brad R. Humphreys, 2005. "Novelty Effects Of New Facilities On Attendance At Professional Sporting Events," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 436-455, July.
  • Handle: RePEc:bla:coecpo:v:23:y:2005:i:3:p:436-455
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    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. More New Stadiums
      by jamesreade in International Journal of Sport Finance Blog on 2009-07-28 08:56:09

    Citations

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    Cited by:

    1. Brad Humphreys & Candon Johnson, 2017. "The Effect of Superstar Players on Game Attendance: Evidence from the NBA," Working Papers 17-16, Department of Economics, West Virginia University.
    2. B Buraimo & R Simmons, 2006. "Market size and attendance in English Premier League football," Working Papers 574562, Lancaster University Management School, Economics Department.
    3. Seth R. Gitter & Thomas A. Rhoads, 2014. "Stadium Construction And Minor League Baseball Attendance," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 144-154, January.
    4. repec:wly:mgtdec:v:38:y:2017:i:5:p:676-688 is not listed on IDEAS
    5. WOLFGANG MAENNIG & STAN du PLESSIS, 2007. "World Cup 2010: South African Economic Perspectives And Policy Challenges Informed By The Experience Of Germany 2006," Contemporary Economic Policy, Western Economic Association International, vol. 25(4), pages 578-590, October.
    6. Craig Depken, 2007. "Another look at anti-scalping laws: Theory and evidence," Public Choice, Springer, vol. 130(1), pages 55-77, January.
    7. Wen-Jhan Jane, 2014. "The Relationship Between Outcome Uncertainties and Match Attendance: New Evidence in the National Basketball Association," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 45(2), pages 177-200, September.
    8. Rodney J. Paul & Andrew P. Weinbach, 2013. "The Yankee Effect in Minor League Baseball," New York Economic Review, New York State Economics Association (NYSEA), vol. 44(1), pages 32-42.
    9. Rodney J. Paul & Andrew P. Weinbach, 2011. "Minor League Baseball Attendance in the Pacific Northwest: A Study of the Effects of Winning, Scoring, Demographics and Promotions in the Northwest and Pioneer Baseball Leagues," Ekonomika a Management, University of Economics, Prague, vol. 2011(2).
    10. Besters, Lucas, 2018. "Economics of professional football," Other publications TiSEM d9e6b9b7-a17b-4665-9cca-1, Tilburg University, School of Economics and Management.
    11. Roger D. Blair & Brad R. Humphreys & Hyunwoong Pyun, 2017. "Monopsony Exploitation in Professional Sport: Evidence from Major League Baseball Position Players, 2000–2011," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 38(5), pages 676-688, July.
    12. Rockerbie, Duane W & Easton, Stephen, 2016. "Of Bricks and Bats: New Stadiums, Talent Supply and Team Performance in Major League Baseball," MPRA Paper 77430, University Library of Munich, Germany.
    13. 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 1123, International Association of Sports Economists;North American Association of Sports Economists.
    14. Tolga Bilgicer & Kamel Jedidi & Donald Lehmann & Scott Neslin, 2015. "The Long-Term Effect of Multichannel Usage on Sales," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(1), pages 41-56, March.
    15. Budzinski, Oliver & Feddersen, Arne, 2015. "Grundlagen der Sportnachfrage: Theorie und Empirie der Einflussfaktoren auf die Zuschauernachfrage," Ilmenau Economics Discussion Papers 94, Ilmenau University of Technology, Institute of Economics.
    16. Daniel, Rascher, 2008. "Franchise Relocations, Expansions, and Mergers in Professional Sports Leagues," MPRA Paper 25809, University Library of Munich, Germany.
    17. Dennis Coates & Brad R. Humphreys, 2008. "The Effect of On-Field Success on Stock Prices: Evidence from Nippon Professional Baseball," Working Papers 0805, International Association of Sports Economists;North American Association of Sports Economists.

    More about this item

    JEL classification:

    • 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
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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