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Competition in shared markets and Major League Baseball broadcast viewership

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  • Brian M. Mills
  • Michael Mondello
  • Scott Tainsky

Abstract

This work evaluates the cross-quality elasticity of related products in the context of local market Nielsen Local People Meter ratings of Major League Baseball (MLB) regular season broadcasts from 2010 through 2013 from six teams in three shared markets. We employ a fixed effects panel regression with multi-way error clustering, finding that fans exhibit nuanced behaviour related to the absolute quality and relative quality of the two local teams. Our estimates imply quality-related competition for viewership between teams in the face of large disparities in quality. However, when both teams are of high quality, viewership increased beyond what own-team success would predict alone for the competing team. The competitive effects are largely dominated by the spillover effects. These findings point to complementary effects of team success beyond own-team interest, and bring about an important nuance in the literature on market definition, competition and substitution in sport.

Suggested Citation

  • Brian M. Mills & Michael Mondello & Scott Tainsky, 2016. "Competition in shared markets and Major League Baseball broadcast viewership," Applied Economics, Taylor & Francis Journals, vol. 48(32), pages 3020-3032, July.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:32:p:3020-3032
    DOI: 10.1080/00036846.2015.1133899
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    References listed on IDEAS

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    3. Seung-Man Lee, 2021. "Traditional and Revised Importance-Performance Analysis of Viewer Perceptions Regarding Korea Baseball Organization Broadcasting," Sustainability, MDPI, vol. 13(21), pages 1-12, October.
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    6. Tim Wallrafen & Georgios Nalbantis & Tim Pawlowski, 2022. "Competition and Fan Substitution Between Professional Sports Leagues," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 61(1), pages 21-43, August.

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