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If you play well they will come-and vice versa: bidirectional causality in major-league baseball

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  • Ira Horowitz

    (University of Florida, FL, USA)

Abstract

The Granger-causality test is applied to the annual attendance and win-percentage data for 29 major-league teams. It is shown that bidirectional causality exists for these teams and that there are some essential differences between the original 10 of 16 franchises that comprised the majors in 1903 and the six that relocated between 1953 and 1961. Some differences and some similarities are also seen in the parameter estimates for both blocs of teams, the relocated teams, and seven long-lived expansion franchises. Finally, the parameter estimates are manipulated to yield noise-free equilibrium estimates for both attendance and performance. In tandem, these two sets of estimates provide fodder for speculation as to the futures of each of the extant 23 franchises considered here. Copyright © 2007 John Wiley & Sons, Ltd.

Suggested Citation

  • Ira Horowitz, 2007. "If you play well they will come-and vice versa: bidirectional causality in major-league baseball," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 93-105.
    • Handle: RePEc:wly:mgtdec:v:28:y:2007:i:2:p:93-105
    DOI: 10.1002/mde.1308
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    References listed on IDEAS

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    Cited by:

    1. Seth R. Gitter & Thomas A. Rhoads, 2010. "Determinants of Minor League Baseball Attendance," Journal of Sports Economics, , vol. 11(6), pages 614-628, December.
    2. 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.
    3. Timothy E. Zimmer & Allison Snyder & Lawrence Bukenya, 2021. "American Baseball Fans Do Not Influence Game Outcomes," Economics Bulletin, AccessEcon, vol. 41(2), pages 741-750.

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