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Novelty effects and sports facilities in smaller cities: Evidence from Canadian hockey arenas

Author

Listed:
  • Brian P Soebbing

    (Louisiana State University, USA)

  • Daniel S Mason

    (University of Alberta, Canada)

  • Brad R Humphreys

    (West Virginia University, USA)

Abstract

Like their larger counterparts, smaller cities use public funds to build facilities to host local sports franchises. One argument for doing so is the new economic activity and attendance new facilities generate. However, academic research examining both major league stadium/arenas and minor league baseball stadiums finds a novelty effect – a brief period of higher attendance – exists but not a long-term sustainable increase for new facilities. This paper extends the research on small cities and novelty effects of sports facilities by integrating and exploring how city size and proximity influences the novelty effect of new hockey arenas in smaller communities. Results show a novelty effect for new facilities built to host Canadian Hockey League franchises for the first five years. In small cities, the novelty effect occurs only in years three through five after opening.

Suggested Citation

  • Brian P Soebbing & Daniel S Mason & Brad R Humphreys, 2016. "Novelty effects and sports facilities in smaller cities: Evidence from Canadian hockey arenas," Urban Studies, Urban Studies Journal Limited, vol. 53(8), pages 1674-1690, June.
    • Handle: RePEc:sae:urbstu:v:53:y:2016:i:8:p:1674-1690
    DOI: 10.1177/0042098015576862
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    References listed on IDEAS

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    2. Stefan Szymanski, 2023. "Anticipating the honeymoon: Event study estimation of new stadium effects in Major League Baseball using the imputation method," Economic Inquiry, Western Economic Association International, vol. 61(4), pages 1077-1102, October.
    3. Budzinski, Oliver & Feddersen, Arne, 2015. "Grundlagen der Sportnachfrage: Theorie und Empirie der Einflussfaktoren auf die Zuschauernachfrage," Ilmenau Economics Discussion Papers 94, Ilmenau University of Technology, Institute of Economics.
    4. Rui Du & Junfu Zhang, 2022. "Super bowl participation and the local economy: Evidence from the stock market," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1513-1545, December.

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