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How Long a Honeymoon? The Effect of New Stadiums on Attendance in Major League Baseball

Author

Listed:
  • Christopher M. Clapp

    (Clemson University)

  • Jahn K. Hakes

    (Clemson University)

Abstract

Using panel data of MLB team attendance from 1950 to 2002, we determined that the attendance “honeymoon†effect of a new stadium—after separating quality-of-play effects—increases attendance by 32% to 37% the opening year of a new stadium. Attendance remains above baseline levels for only two seasons for multipurpose stadiums built during 1960 to 1974 but for 6 to 10 seasons at newer ballparks. Contrary to expectations, there is no systematic interaction between new venues and team performance on attendance or stadium revenues. This noncomplementarity implies that a profit-maximizing team owner would not use a new stadium’s revenue stream to increase team quality of play.

Suggested Citation

  • Christopher M. Clapp & Jahn K. Hakes, 2005. "How Long a Honeymoon? The Effect of New Stadiums on Attendance in Major League Baseball," Journal of Sports Economics, , vol. 6(3), pages 237-263, August.
    • Handle: RePEc:sae:jospec:v:6:y:2005:i:3:p:237-263
    DOI: 10.1177/1527002504265957
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    References listed on IDEAS

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