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Novelty Effects of New Facilities on Attendance at Professional Sporting Events

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Author Info
Dennis Coates () (UMBC)
Brad R. Humphreys () (UMBC)

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Abstract

We investigate the possibility that new facilities affect attendance - the "novelty effect" - in professional baseball, basketball, and football from 1969-2001 by estimating the parameters of a reduced form attendance model. Our results indicate a strong, persistent novelty effect in baseball and basketball and little or no novelty effect in football. Our estimates of size and duration of the novelty effect imply that, in a new facility, at a minimum, a baseball team would sell an additional 2,561,702 tickets over the first eight seasons, a basketball team 446,936 over the first nine seasons, and a football team 163,436 over the first five seasons. This increase in attendance also suggests a corresponding increase in revenues that could be tapped to help defray the large public subsidies that state and local governments frequently provide to new stadium and arena construction projects.

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File URL: http://www.umbc.edu/economics/wpapers/wp_03_101.pdf
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Publisher Info
Paper provided by UMBC Department of Economics in its series UMBC Economics Department Working Papers with number 03-101.

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Length: 19 pages
Date of creation: Aug 2003
Date of revision:
Handle: RePEc:umb:econwp:03101

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Postal: UMBC Department of Economics 1000 Hilltop Circle Baltimore MD 21250, USA
Phone: 410-455-2160
Fax: 410-455-1054
Web page: http://www.umbc.edu/economics
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Related research
Keywords: Professional Sports; Attendance; Novelty Effect;

Other versions of this item:

Find related papers by JEL classification:
L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Recreation; Tourism
R39 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location - - - Other
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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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.:
  1. Dennis Coates & Thane Harrison, 2004. "Baseball Strikes and the Demand for Attendance," UMBC Economics Department Working Papers 04-101, UMBC Department of Economics. [Downloadable!]
  2. Kahane, Leo & Shmanske, Stephen, 1997. "Team Roster Turnover and Attendance in Major League Baseball," Applied Economics, Taylor and Francis Journals, vol. 29(4), pages 425-31, April. [Downloadable!] (restricted)
  3. Eckard, E Woodrow, 2001. "Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention," Economic Inquiry, Oxford University Press, vol. 39(3), pages 430-43, July.
  4. Coates, Dennis & Humphreys, Brad R., 2003. "The effect of professional sports on earnings and employment in the services and retail sectors in US cities," Regional Science and Urban Economics, Elsevier, vol. 33(2), pages 175-198, March. [Downloadable!] (restricted)
  5. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, Southern Economic Association, vol. 67(3), pages 737-747, January.
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Cited by:
(explanations, 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.)

  1. Rob Simmons & Babatunde Buraimo, 2006. "Market size and attendance in English Premier League football," Working Papers 003092, Lancaster University Management School, Economics Department. [Downloadable!]
  2. Dennis Coates & Brad R. Humphreys, 2008. "The Effect of On-Field Success on Stock Prices: Evidence from Nippon Professional Baseball," Working Papers 0805, International Association of Sports Economists. [Downloadable!]
  3. Craig Depken, 2007. "Another look at anti-scalping laws: Theory and evidence," Public Choice, Springer, vol. 130(1), pages 55-77, January. [Downloadable!] (restricted)
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