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The Effects of Labor Strikes on Consumer Demand: A Re-examination of Major League Baseball

Author

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  • Victor Matheson

    (Department of Economics, College of the Holy Cross)

Abstract

Previous research has concluded that the 1981 and 1994/95 Major League Baseball (MLB) strikes have caused short-term losses in attendance but have not resulted in any long-term effects on attendance. While total attendance at MLB games following the 1994/95 strike has recovered to its pre-strike levels, this has been done only through the construction of new stadiums at an unprecedented pace which cannot continue into the future. After accounting for stadium effects, average MLB baseball attendance has dropped significantly since the 1994/95 strike.

Suggested Citation

  • Victor Matheson, 2004. "The Effects of Labor Strikes on Consumer Demand: A Re-examination of Major League Baseball," Working Papers 0405, College of the Holy Cross, Department of Economics.
    • Handle: RePEc:hcx:wpaper:0405
    as

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    File URL: https://hcapps.holycross.edu/hcs/RePEc/hcx/HC0405-Matheson_Attendance.pdf
    File Function: Revised, abbreviated version, 2004
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    References listed on IDEAS

    as
    1. Martin B. Schmidt & David J. Berri, 2004. "The Impact of Labor Strikes on Consumer Demand: An Application to Professional Sports," American Economic Review, American Economic Association, vol. 94(1), pages 344-357, March.
    2. Martin Schmidt & David Berri, 2002. "The impact of the 1981 and 1994-1995 strikes on Major League Baseball attendance: a time-series analysis," Applied Economics, Taylor & Francis Journals, vol. 34(4), pages 471-478.
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    Cited by:

    1. Michael C. Davis, 2009. "Analyzing the Relationship Between Team Success and MLB Attendance With GARCH Effects," Journal of Sports Economics, , vol. 10(1), pages 44-58, February.
    2. Robert W. Baumann & Victor A. Matheson, 2017. "Many happy returns? The Pro-Bowl, mega-events, and tourism in Hawaii," Tourism Economics, , vol. 23(4), pages 788-802, June.
    3. Robert W. Baumann & Victor A. Matheson & Chihiro Muroi, 2009. "Bowling in Hawaii," Journal of Sports Economics, , vol. 10(1), pages 107-123, February.
    4. Robert Baumann & Victor Matheson & Chihiro Muroi, 2008. "Bowling in Hawaii: Examining the Effectiveness of Sports-Based Tourism Strategies," Working Papers 0808, College of the Holy Cross, Department of Economics.
    5. Drayer, Joris & Shapiro, Stephen L., 2011. "An examination into the factors that influence consumers’ perceptions of value," Sport Management Review, Elsevier, vol. 14(4), pages 389-398.
    6. Oliver Hahl, 2016. "Turning Back the Clock in Baseball: The Increased Prominence of Extrinsic Rewards and Demand for Authenticity," Organization Science, INFORMS, vol. 27(4), pages 929-953, August.
    7. Watanabe, Nicholas M. & Yan, Grace & Soebbing, Brian P., 2019. "Market disruption as a regime for athlete activism: An economic analysis of college football player protests," Sport Management Review, Elsevier, vol. 22(5), pages 600-612.
    8. Robert Baade & Robert Baumann & Victor Matheson, 2006. "The Economic Consequences of Professional Sports Strikes and Lockouts: Revisited," Working Papers 0604, College of the Holy Cross, Department of Economics.
    9. Joris Drayer & Daniel A. Rascher & Chad D. McEvoy, 2012. "An examination of underlying consumer demand and sport pricing using secondary market data," Sport Management Review, Taylor & Francis Journals, vol. 15(4), pages 448-460, October.
    10. Jason Winfree, 2009. "Owners incentives during the 2004-05 National Hockey League lockout," Applied Economics, Taylor & Francis Journals, vol. 41(25), pages 3275-3285.

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    More about this item

    Keywords

    baseball; strikes; sports; attendance;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • J52 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Dispute Resolution: Strikes, Arbitration, and Mediation
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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