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The Demand for Major League Baseball: A Test of the Uncertainty of Outcome Hypothesis

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  • Glenn Knowles
  • Keith Sherony
  • Mike Haupert

Abstract

The relationship between attendance at major league baseball games and the uncertainty of the outcome of each game is examined. We use an a priori measure of uncertainty in estimating the attendance equation. The variable is developed from the betting lines for individual games and measures the probability of a home team victory during the 1988 major league baseball season. The results indicate that uncertainty of outcome is a significant determinant of attendance for major league baseball. In addition, the results are used to determine the probability of a home team victory at which attendance will be maximized.

Suggested Citation

  • Glenn Knowles & Keith Sherony & Mike Haupert, 1992. "The Demand for Major League Baseball: A Test of the Uncertainty of Outcome Hypothesis," The American Economist, Sage Publications, vol. 36(2), pages 72-80, October.
    • Handle: RePEc:sae:amerec:v:36:y:1992:i:2:p:72-80
    DOI: 10.1177/056943459203600210
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    References listed on IDEAS

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    1. Walter C. Neale, 1964. "The Peculiar Economics of Professional Sports," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 78(1), pages 1-14.
    2. Simon Rottenberg, 1956. "The Baseball Players' Labor Market," Journal of Political Economy, University of Chicago Press, vol. 64, pages 242-242.
    3. Jeff Borland, 1987. "The Demand for Australian Rules Football," The Economic Record, The Economic Society of Australia, vol. 63(3), pages 220-230, September.
    4. Peel, David A & Thomas, Dennis A, 1988. "Outcome Uncertainty and the Demand for Football: An Analysis of Match Attendances in the English Football League," Scottish Journal of Political Economy, Scottish Economic Society, vol. 35(3), pages 242-249, August.
    5. Borland, Jeff, 1987. "The Demand for Australian Rules Football," The Economic Record, The Economic Society of Australia, vol. 63(182), pages 220-230, September.
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