Subsidies as incentive mechanisms in sports
Applying even the most fundamental public choice principles suggests that subsidies to sports team owners will be inversely related to ticket prices. The primary aim of this paper is to demonstrate the impact of such an inverse relationship on the pricing behavior of owners. Theory shows that if either the rent or concessions|parking response by policy makers is elastic (percentage change in subsidy is greater than the percentage change in prices by teams), then the other one cannot be. A (very) cursory look at readily available NFL data lends support to the theory, at least for single-use stadiums. The outcomes here may inform any future analysis that extends the idea into the full-blown analysis of the politics of subsidies and for those interested in the rationing by waiting that often occurs at sports events. Copyright © 2004 John Wiley & Sons, Ltd.
Volume (Year): 25 (2004)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Quigley, John M. & Smolensky, Eugene, 1997. "Stickball in San Francisco," Berkeley Program on Housing and Urban Policy, Working Paper Series qt3rw313m3, Berkeley Program on Housing and Urban Policy.
- Rodney Fort, 2004. "Inelastic sports pricing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 25(2), pages 87-94.
When requesting a correction, please mention this item's handle: RePEc:wly:mgtdec:v:25:y:2004:i:2:p:95-102. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.