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Location and Survival in the National Hockey League


  • Jones, J C H
  • Ferguson, D G


A model of professional sport franchises is introduced and used to explore the locational and other determi nants of profitability. Particular attention is paid to the effect of location on attendance, market power, and long-run team quality. Whe n estimated using data for the National Hockey League in 1977-78, the model indicates that location has an effect on each of these and tha t their combined effect on profitability is effective in explaining p rior and subsequent decisions concerning league expansion and franchi se relocation. A number of other matters are also addressed, includin g league arguments for antitrust exemption and league policies to res trict expansion. Copyright 1988 by Blackwell Publishing Ltd.

Suggested Citation

  • Jones, J C H & Ferguson, D G, 1988. "Location and Survival in the National Hockey League," Journal of Industrial Economics, Wiley Blackwell, vol. 36(4), pages 443-457, June.
  • Handle: RePEc:bla:jindec:v:36:y:1988:i:4:p:443-57

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    References listed on IDEAS

    1. Richard E. Just & Wen S. Chern, 1980. "Tomatoes, Technology, and Oligopsony," Bell Journal of Economics, The RAND Corporation, vol. 11(2), pages 584-602, Autumn.
    2. Iwata, Gyoichi, 1974. "Measurement of Conjectural Variations in Oligopoly," Econometrica, Econometric Society, vol. 42(5), pages 947-966, September.
    3. Davidson, Carl & Martin, Lawrence W, 1985. "General Equilibrium Tax Incidence under Imperfect Competition: A Quantity-setting Supergame Analysis," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1212-1223, December.
    4. Appelbaum, Elie, 1979. "Testing price taking behavior," Journal of Econometrics, Elsevier, vol. 9(3), pages 283-294, February.
    5. Gollop, Frank M. & Roberts, Mark J., 1979. "Firm interdependence in oligopolistic markets," Journal of Econometrics, Elsevier, vol. 10(3), pages 313-331, August.
    6. Appelbaum, Elie, 1982. "The estimation of the degree of oligopoly power," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 287-299, August.
    7. Lafontaine, Francine & White, Kenneth J., 1986. "Obtaining any Wald statistic you want," Economics Letters, Elsevier, vol. 21(1), pages 35-40.
    8. Robert L. Bishop, 1968. "The Effects of Specific and Ad Valorem Taxes," The Quarterly Journal of Economics, Oxford University Press, vol. 82(2), pages 198-218.
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    Cited by:

    1. Roger G. Noll, 2013. "Endogeneity in attendance demand models," Chapters,in: The Econometrics of Sport, chapter 7, pages 117-134 Edward Elgar Publishing.
    2. Men-Andri Benz & Leif Brandes & Egon Franck, 2009. "Do Soccer Associations Really Spend On A Good Thing? Empirical Evidence On Heterogeneity In The Consumer Response To Match Uncertainty Of Outcome," Contemporary Economic Policy, Western Economic Association International, vol. 27(2), pages 216-235, 04.
    3. Julian Blackham & Bruce Chapman, 2004. "The Value Of Don Bradman: Additional Revenue In Australian Ashes Tests," Economic Papers, The Economic Society of Australia, vol. 23(4), pages 369-385, December.
    4. Pelnar, Gregory, 2007. "Antitrust Analysis of Sports Leagues," MPRA Paper 5382, University Library of Munich, Germany.
    5. J. C. H. Jones & J. A. Schofield & D. E. A. Giles, 2000. "Our fans in the north: the demand for British Rugby League," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1877-1887.
    6. John C. Leadley & Zenon X. Zygmont, 2006. "When Is the Honeymoon Over? National Hockey League Attendance, 1970­2003," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 213-232, June.

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