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Dynasties versus pennant races: competitive balance in major league baseball

  • Anthony C. Krautmann

    (Department of Economics, DePaul University, Chicago, IL 60604, USA)

  • Lawrence Hadley

    (Department of Economics, University of Dayton, Dayton, OH 45469, USA)

This paper examines the impact of competitive balance on attendance in Major League Baseball. Two types of competitive balance are included in a single-equation model of attendance: intra-seasonal balance and inter-seasonal balance. The metric used to calibrate the first is the ratio of the actual standard deviation of season win percents divided by the ideal standard deviation. Inter-seasonal balance is calibrated with Markov transitional probabilities of teams making the playoffs in consecutive seasons. The results indicate that intra-seasonal balance does not significantly impact attendance, and that inter-seasonal balance has significant but small impacts on attendance in the American League. Copyright © 2006 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/mde.1260
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Article provided by John Wiley & Sons, Ltd. in its journal Managerial and Decision Economics.

Volume (Year): 27 (2006)
Issue (Month): 4 ()
Pages: 287-292

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Handle: RePEc:wly:mgtdec:v:27:y:2006:i:4:p:287-292
Contact details of provider: Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/7976

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  1. Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 133-148, May.
  2. Joshua Utt & Rodney Fort, 2002. "Pitfalls to Measuring Competitive Balance With Gini Coefficients," Journal of Sports Economics, , vol. 3(4), pages 367-373, November.
  3. Craig Depken, 1999. "Free-Agency and the Competitiveness of Major League Baseball," Review of Industrial Organization, Springer, vol. 14(3), pages 205-217, May.
  4. Martin Schmidt & David Berri, 2002. "Competitive Balance and Market Size in Major League Baseball: A Response to Baseball's Blue Ribbon Panel," Review of Industrial Organization, Springer, vol. 21(1), pages 41-54, August.
  5. Young Hoon Lee & Rodney Fort, 2005. "Structural Change in MLB Competitive Balance: The Depression, Team Location, and Integration," Economic Inquiry, Western Economic Association International, vol. 43(1), pages 158-169, January.
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