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Where did National Hockey League Fans go During the 2004-2005 Lockout?: An Analysis of Economic Competition Between Leagues

Author

Listed:
  • Daniel, Rascher
  • Matt, Brown
  • Mark, Nagel
  • Chad, McEvoy

Abstract

Identifying and evaluating competitors is a critical aspect of operating a sport organisation. However, North American sports franchises have a limited understanding of competitors in their geographic market – particularly when calculating the degree of competition from other sport teams. Increasing the understanding of local sport competitors, whether in the same or different professional leagues, is critical not only to future franchise operations, but also for potential litigation concerning relevant product markets. This article utilises a natural experiment involving the National Hockey League’s (NHL) 2004-2005 lockout to assess the competitiveness of the NHL with the National Basketball Association (NBA) and four minor hockey leagues. On average, the five potential competitor leagues attained a 2% increase in demand, all else equal, during the lockout period. For the NBA this translates into more than US$1 million per team in increased incremental ticket revenue.

Suggested Citation

  • Daniel, Rascher & Matt, Brown & Mark, Nagel & Chad, McEvoy, 2009. "Where did National Hockey League Fans go During the 2004-2005 Lockout?: An Analysis of Economic Competition Between Leagues," MPRA Paper 25804, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:25804
    as

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    File URL: https://mpra.ub.uni-muenchen.de/25804/1/MPRA_paper_25804.pdf
    File Function: original version
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    References listed on IDEAS

    as
    1. Rascher, Daniel & Rascher, Heather, 2004. "NBA Expansion and Relocation: A Viability Study of Various Cities," MPRA Paper 25740, University Library of Munich, Germany.
    2. Rascher, Daniel A. & Baehr, Matthew J. & Wolfe, Jason & Frohwerk, Steven, 2006. "An Analysis of Expansion and Relocation Sites for Major League Soccer," MPRA Paper 25742, University Library of Munich, Germany.
    3. Jason Winfree & Jill McCluskey & Ron Mittelhammer & Rodney Fort, 2004. "Location and attendance in major league baseball," Applied Economics, Taylor & Francis Journals, vol. 36(19), pages 2117-2124.
    4. Song, Haiyan & Liu, Xiaming & Romilly, Peter, 1997. "A Comparative Study of Modelling the Demand for Food in the United States and the Netherlands," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(5), pages 593-608, Sept.-Oct.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Rodney J. Paul & Robert Chatt, 2011. "Regional Differences in Fan Preferences for Minor League Hockey: The AHL," New York Economic Review, New York State Economics Association (NYSEA), vol. 42(1), pages 63-73.
    2. Rodney Paul & Andrew Weinbach, 2011. "Determinants of Attendance in the Quebec Major Junior Hockey League: Role of Winning, Scoring, and Fighting," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(3), pages 303-311, September.
    3. Mongeon, Kevin & Winfree, Jason, 2012. "Cross-ownership, league policies and player investment across sports leagues," MPRA Paper 39218, University Library of Munich, Germany.
    4. Kevin Mongeon & Jason Winfree, 2013. "The Effects of Cross-Ownership and League Policies Across Sports Leagues Within a City," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(3), pages 145-162, November.

    More about this item

    Keywords

    relevant market; competition; demand; National Hockey League; regression;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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