IDEAS home Printed from https://ideas.repec.org/a/sae/jospec/v10y2009i1p44-58.html
   My bibliography  Save this article

Analyzing the Relationship Between Team Success and MLB Attendance With GARCH Effects

Author

Listed:
  • Michael C. Davis

    (Missouri University of Science and Technology, davismc@mst.edu)

Abstract

This research extends the analysis of the importance of winning on attendance. The author assumes that fan's reactions differ across teams and estimates separate attendance models for each Major League Baseball team in the sample. Results from generalized autoregressive conditional heteroskedasticity (GARCH) models indicate winning is an important determinant of attendance for the 12 National League teams in the sample, although some variation exists in the magnitude of the effect across teams. Results from the GARCH models are similar in magnitude to results from other alternative estimation procedures. The study also finds a boost in attendance from playing an interleague opponent.

Suggested Citation

  • 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.
    • Handle: RePEc:sae:jospec:v:10:y:2009:i:1:p:44-58
    DOI: 10.1177/1527002508327387
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/1527002508327387
    Download Restriction: no
    File URL: https://libkey.io/10.1177/1527002508327387?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael R. Butler, 2002. "Interleague Play and Baseball Attendance," Journal of Sports Economics, , vol. 3(4), pages 320-334, November.
    2. Martin B. Schmidt & David J. Berri, 2001. "Competitive Balance and Attendance," Journal of Sports Economics, , vol. 2(2), pages 145-167, May.
    3. Victor Matheson, 2006. "The effects of labour strikes on consumer demand in professional sports: revisited," Applied Economics, Taylor & Francis Journals, vol. 38(10), pages 1173-1179.
    4. James D. Hamilton, 2008. "Macroeconomics and ARCH," NBER Working Papers 14151, National Bureau of Economic Research, Inc.
    5. McDonald, Mark & Rascher, Daniel, 2000. "Does Bat Day Make Cents? The Effect of Promotions on the Demand for Major League Baseball," MPRA Paper 25739, University Library of Munich, Germany.
    6. Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 31(3), pages 307-327, April.
    7. Lorna Gifis & Paul Sommers, 2006. "Promotions and Attendance in Minor League Baseball," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 34(4), pages 513-514, December.
    8. James W. Meehan Jr. & Randy A. Nelson & Thomas V. Richardson, 2007. "Competitive Balance and Game Attendance in Major League Baseball," Journal of Sports Economics, , vol. 8(6), pages 563-580, December.
    9. Martin B. Schmidt & David J. Berri, 2006. "Research Note: What Takes Them Out to the Ball Game?," Journal of Sports Economics, , vol. 7(2), pages 222-233, May.
    10. Engle, Robert F, 1982. "Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation," Econometrica, Econometric Society, vol. 50(4), pages 987-1007, July.
    11. Daniel, Rascher, 1999. "A Test of the Optimal Positive Production Network Externality in Major League Baseball," MPRA Paper 25832, University Library of Munich, Germany.
    12. Glenn Knowles & Keith Sherony & Mike Haupert, 1992. "The Demand for Major League Baseball: A Test of the Uncertainty of Outcome Hypothesis," The American Economist, Sage Publications, vol. 36(2), pages 72-80, October.
    13. Craig A. Depken II, 2000. "Fan Loyalty and Stadium Funding in Professional Baseball," Journal of Sports Economics, , vol. 1(2), pages 124-138, May.
    14. Karl W. Einolf, 2004. "Is Winning Everything?," Journal of Sports Economics, , vol. 5(2), pages 127-151, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brian M. Mills & Rodney Fort, 2023. "Performance Quality Preference Heterogeneity in Major League Baseball," Journal of Sports Economics, , vol. 24(3), pages 352-373, April.
    2. Rodney Fort & James Quirk, 2010. "Optimal Competitive Balance in Single-Game Ticket Sports Leagues," Journal of Sports Economics, , vol. 11(6), pages 587-601, December.
    3. Stefan Szymanski & Jason Winfree, 2018. "On The Optimal Realignment Of A Contest: The Case Of College Football," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 483-496, January.
    4. Chun-Da Chen & Chih-Chun Chen, 2012. "Assessing the Effects of Sports Marketing on Stock Returns," Journal of Sports Economics, , vol. 13(2), pages 169-197, April.
    5. Ira Horowitz & Jim Lackritz, 2012. "Jolting Joe and Charlie Hustle: The Immediate Economic Impact of an Extended Hitting Streak," The American Economist, Sage Publications, vol. 57(1), pages 42-49, May.
    6. Hiroaki Funahashi & Shintaro Sato & Takuya Furukawa, 2022. "COVID-19 and Attendance Demand for Professional Sport in Japan: A Multilevel Analysis of Repeated Cross-Sectional National Data during the Pandemic," IJERPH, MDPI, vol. 19(9), pages 1-10, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zulal Denaux & David Denaux & Yeliz Yalcin, 2011. "Factors Affecting Attendance of Major League Baseball: Revisited," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 39(2), pages 117-127, June.
    2. Jeffery Borland, 2003. "Demand for Sport," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 19(4), pages 478-502, Winter.
    3. Robert J. Lemke & Matthew Leonard & Kelebogile Tlhokwane, 2010. "Estimating Attendance at Major League Baseball Games for the 2007 Season," Journal of Sports Economics, , vol. 11(3), pages 316-348, June.
    4. Russell Ormiston, 2014. "Attendance Effects of Star Pitchers in Major League Baseball," Journal of Sports Economics, , vol. 15(4), pages 338-364, August.
    5. Elise M. Beckman & Wenqiang Cai & Rebecca M. Esrock & Robert J. Lemke, 2012. "Explaining Game-to-Game Ticket Sales for Major League Baseball Games Over Time," Journal of Sports Economics, , vol. 13(5), pages 536-553, October.
    6. Brian Mills & Rodney Fort, 2014. "League-Level Attendance And Outcome Uncertainty In U.S. Pro Sports Leagues," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 205-218, January.
    7. Sung, Hojun & Mills, Brian M., 2018. "Estimation of game-level attendance in major league soccer: Outcome uncertainty and absolute quality considerations," Sport Management Review, Elsevier, vol. 21(5), pages 519-532.
    8. Scott Tainsky & Jie Xu & Brian Mills & Steven Salaga, 2016. "How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(1), pages 29-43, February.
    9. Tony Caporale & Trevor Collier, 2015. "Are We Getting Better or Are They Getting Worse? Draft Position, Strength of Schedule, and Competitive Balance in the National Football League," Journal of Labor Research, Springer, vol. 36(3), pages 291-300, September.
    10. Yudong Wang & Li Liu, 2016. "Crude oil and world stock markets: volatility spillovers, dynamic correlations, and hedging," Empirical Economics, Springer, vol. 50(4), pages 1481-1509, June.
    11. Stefan Szymanski, 2010. "The Economic Design of Sporting Contests," Palgrave Macmillan Books, in: The Comparative Economics of Sport, chapter 1, pages 1-78, Palgrave Macmillan.
    12. Scott Tainsky & Jie Xu & Brian M. Mills & Steven Salaga, 2016. "How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 48(1), pages 29-43, February.
    13. Amélie Charles & Olivier Darné & Laurent Ferrara, 2018. "Does The Great Recession Imply The End Of The Great Moderation? International Evidence," Economic Inquiry, Western Economic Association International, vol. 56(2), pages 745-760, April.
    14. James W. Meehan Jr. & Randy A. Nelson & Thomas V. Richardson, 2007. "Competitive Balance and Game Attendance in Major League Baseball," Journal of Sports Economics, , vol. 8(6), pages 563-580, December.
    15. Jigyu Chung & Young Hoon Lee & Joon-Ho Kang, 2016. "Ex Ante and Ex Post Expectations of Outcome Uncertainty and Baseball Television Viewership," Journal of Sports Economics, , vol. 17(8), pages 790-812, December.
    16. David J. Berri & Martin B. Schmidt, 2006. "On the Road With the National Basketball Association's Superstar Externality," Journal of Sports Economics, , vol. 7(4), pages 347-358, November.
    17. R. Alan Bowman & James Lambrinos & Thomas Ashman, 2013. "Competitive Balance in the Eyes of the Sports Fan," Journal of Sports Economics, , vol. 14(5), pages 498-520, October.
    18. Bezemer, Dirk J & Grydaki, Maria, 2012. "Mortgage Lending and the Great moderation: a multivariate GARCH Approach," MPRA Paper 36356, University Library of Munich, Germany.
    19. David J. Berri & Martin B. Schmidt & Stacey L. Brook, 2004. "Stars at the Gate," Journal of Sports Economics, , vol. 5(1), pages 33-50, February.
    20. Adam Cox, 2018. "Spectator Demand, Uncertainty of Results, and Public Interest," Journal of Sports Economics, , vol. 19(1), pages 3-30, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:jospec:v:10:y:2009:i:1:p:44-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.