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Novelty Effects Of New Facilities On Attendance At Professional Sporting Events

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  • DENNIS COATES
  • BRAD R. HUMPHREYS

Abstract

We investigate the effect of new facilities on attendance in professional baseball, basketball, and football from 1969 to 2001. We find a strong, persistent effect in baseball and basketball, and little effect in football. Size and duration estimates imply that baseball teams sell 2,500,794 additional tickets over the first eight seasons, basketball teams 293,878 over the first nine seasons, and football teams 137,792 over the first five seasons, implying an increase in revenues that could defray public subsidies that state and local governments provide for new sports construction projects. Rough calculations suggest that stadium subsidies are an inefficient method of subsidizing professional sports franchises. (JEL R39, D12, L83)

Suggested Citation

  • Dennis Coates & Brad R. Humphreys, 2005. "Novelty Effects Of New Facilities On Attendance At Professional Sporting Events," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 436-455, July.
    • Handle: RePEc:bla:coecpo:v:23:y:2005:i:3:p:436-455
    DOI: 10.1093/cep/byi033
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    References listed on IDEAS

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    1. 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.
    2. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, John Wiley & Sons, vol. 67(3), pages 737-747, January.
    3. Dennis Coates & Brad R. Humphreys, 1999. "The growth effects of sport franchises, stadia, and arenas," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 18(4), pages 601-624.
    4. Amemiya, Takeshi, 1973. "Regression Analysis when the Dependent Variable is Truncated Normal," Econometrica, Econometric Society, vol. 41(6), pages 997-1016, November.
    5. 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.
    6. Leo Kahane & Stephen Shmanske, 1997. "Team roster turnover and attendance in major league baseball," Applied Economics, Taylor & Francis Journals, vol. 29(4), pages 425-431.
    7. Donald I. Price & Kabir C. Sen, 2003. "The demand for game day attendance in college football: an analysis of the 1997 Division 1-A season," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 24(1), pages 35-46.
    8. Dennis Coates & Thane Harrison, 2005. "Baseball Strikes and the Demand for Attendance," Journal of Sports Economics, , vol. 6(3), pages 282-302, August.
    9. Craig A. Depken II, 2001. "Fan Loyalty in Professional Sports," Journal of Sports Economics, , vol. 2(3), pages 275-284, August.
    10. Dennis Coates & Brad R. Humphreys, 2001. "The Economic Consequences of Professional Sports Strikes and Lockouts," Southern Economic Journal, John Wiley & Sons, vol. 67(3), pages 737-747, January.
    11. Eckard, E Woodrow, 2001. "Free Agency, Competitive Balance, and Diminishing Returns to Pennant Contention," Economic Inquiry, Western Economic Association International, vol. 39(3), pages 430-443, July.
    12. Jaume García & Plácido Rodríguez, 2002. "The Determinants of Football Match Attendance Revisited," Journal of Sports Economics, , vol. 3(1), pages 18-38, February.
    13. 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.
    14. Brad R. Humphreys, 2002. "Alternative Measures of Competitive Balance in Sports Leagues," Journal of Sports Economics, , vol. 3(2), pages 133-148, May.
    15. Craig A. Depken II, 2000. "Fan Loyalty and Stadium Funding in Professional Baseball," Journal of Sports Economics, , vol. 1(2), pages 124-138, May.
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    More about this item

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • R39 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

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