IDEAS home Printed from https://ideas.repec.org/a/kap/revind/v48y2016i1d10.1007_s11151-015-9479-7.html
   My bibliography  Save this article

How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League

Author

Listed:
  • Scott Tainsky

    () (University of Illinois)

  • Jie Xu

    (University of Illinois)

  • Brian M. Mills

    (University of Florida)

  • Steven Salaga

    (Texas A&M University)

Abstract

Abstract Professional sports league franchises are both on-field competitors and business partners. In this paper, we examine whether local franchise characteristics are associated with the consumption of goods that are produced by other franchises within the same league. Specifically, we investigate how uncertainty over whether the local market team reaches the postseason affects interest in out-of-market National Football League broadcasts. We find that consumers possess a conditional interest in other league contests depending on the degree to which the local franchise is in the race to reach the playoffs. This effect increases at a diminishing rate and reaches a maximum when local franchise playoff probability is approximately 60 %.

Suggested Citation

  • Scott Tainsky & Jie Xu & Brian M. Mills & Steven Salaga, 2016. "How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(1), pages 29-43, February.
  • Handle: RePEc:kap:revind:v:48:y:2016:i:1:d:10.1007_s11151-015-9479-7
    DOI: 10.1007/s11151-015-9479-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11151-015-9479-7
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Fiona Carmichael & Janet Millington & Roberts Simmons, 1999. "Elasticity of demand for Rugby League attendance and the impact of BskyB," Applied Economics Letters, Taylor & Francis Journals, vol. 6(12), pages 797-800.
    2. Paul, Rodney J. & Weinbach, Andrew P., 2007. "The uncertainty of outcome and scoring effects on Nielsen ratings for Monday Night Football," Journal of Economics and Business, Elsevier, vol. 59(3), pages 199-211.
    3. Michael R. Butler, 2002. "Interleague Play and Baseball Attendance," Journal of Sports Economics, , vol. 3(4), pages 320-334, November.
    4. Stuart S. Rosenthal & William C. Strange, 2003. "Geography, Industrial Organization, and Agglomeration," The Review of Economics and Statistics, MIT Press, vol. 85(2), pages 377-393, May.
    5. Scott Tainsky & Jason Winfree, 2010. "Short-Run Demand and Uncertainty of Outcome in Major League Baseball," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 37(3), pages 197-214, November.
    6. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64, pages 242-242.
    7. Daniel A. Rascher & John Paul G. Solmes, 2007. "Do Fans Want Close Contests? A Test of the Uncertainty of Outcome Hypothesis in the National Basketball Association," International Journal of Sport Finance, Fitness Information Technology, vol. 2(3), pages 130-141, August.
    8. Elisa Giuliani, 2007. "The selective nature of knowledge networks in clusters: evidence from the wine industry," Journal of Economic Geography, Oxford University Press, vol. 7(2), pages 139-168, March.
    9. McDonald, Mark & Rascher, Daniel, 2000. "Does Bat Day Make Cents? The Effect of Promotions on the Demand for Major League Baseball," MPRA Paper 25739, University Library of Munich, Germany.
    10. Daniel, Rascher, 1999. "A Test of the Optimal Positive Production Network Externality in Major League Baseball," MPRA Paper 25832, University Library of Munich, Germany.
    11. Jennett, Nicholas I, 1984. "Attendances, Uncertainty of Outcome and Policy in Scottish League Football," Scottish Journal of Political Economy, Scottish Economic Society, vol. 31(2), pages 176-198, June.
    12. Whitney, James D, 1988. "Winning Games versus Winning Championships: The Economics of Fan Interest and Team Performance," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 703-724, October.
    13. David Peel & Dennis Thomas, 1996. "Attendance demand: an investigation of repeat fixtures," Applied Economics Letters, Taylor & Francis Journals, vol. 3(6), pages 391-394.
    14. Steven Salaga & Jason A. Winfree, 2015. "Determinants of Secondary Market Sales Prices for National Football League Personal Seat Licenses and Season Ticket Rights," Journal of Sports Economics, , vol. 16(3), pages 227-253, April.
    15. David Forrest & Rob Simmons & Stefan Szymanski, 2004. "Broadcasting, Attendance and the Inefficiency of Cartels," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 24(3), pages 243-265, May.
    16. Michael E. Porter, 2000. "Location, Competition, and Economic Development: Local Clusters in a Global Economy," Economic Development Quarterly, , vol. 14(1), pages 15-34, February.
    17. Peel, David A & Thomas, Dennis A, 1992. "The Demand for Football: Some Evidence on Outcome Uncertainty," Empirical Economics, Springer, vol. 17(2), pages 323-331.
    18. Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
    19. Yi-hsuan Chiang & Wen-jhan Jane, 2013. "The Effects of Outcome Uncertainties, Patriotism, and Asian Regionalism in the World Baseball Classic," Journal of Media Economics, Taylor & Francis Journals, vol. 26(3), pages 148-161, September.
    20. Borland, Jeff, 1987. "The Demand for Australian Rules Football," The Economic Record, The Economic Society of Australia, vol. 63(182), pages 220-230, September.
    21. Hausman, Jerry A & Leonard, Gregory K, 1997. "Superstars in the National Basketball Association: Economic Value and Policy," Journal of Labor Economics, University of Chicago Press, vol. 15(4), pages 586-624, October.
    Full references (including those not matched with items on IDEAS)

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:revind:v:48:y:2016:i:1:d:10.1007_s11151-015-9479-7. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.