Baseball Economics: Current Research

By John Fizel; Elizabeth Gustafson et al. | Go to book overview

games scheduled during April and May. With daily attendance in both leagues substantially lower during the first third of the season, lower prices might have an important positive effect, attracting more fans to games before school is out and before the season's division races and individual player performance levels have been established. Like other recommendations, this decision should be based on comparison of marginal revenue and marginal cost.

Fans' behavior in 1995 clearly demonstrated that they had yet to forget or forgive MLB owners and players for the 1994 strike. Neither our study nor any others we have examined model the behavior of angry fans. Until this anger subsides, prediction and recommendation are fraught with more than the usual uncertainty. Nonetheless, our model suggests several steps owners can take to increase attendance.


NOTES
1.
See "Baseball Losses" ( 1995). Twenty percent surely understates the actual attendance decline, because both the American and National Leagues base their official attendance count on ticket sales rather than on turnstile count, and thus the reported decline does not include the effect of "no-shows" on attendance. The article goes on to report that the income drop for major league baseball exceeds the attendance and decline because many teams sold tickets at discount prices.
2.
Attendance-related revenue sources include concessions, parking, stadium suite rentals, stadium advertising, and publication sales. For recent estimates of the share of MLB revenues coming from attendance and related items, see Zimbalist ( 1992b), p. 51, and Aaron et al. ( 1992), Attachment B, p. 3.
3.
The national television contract that expired in 1993 paid each MLB team $14 million per year; the succeeding agreement between MLB and three networks--ESPN, ABC, and NBC--furnished each team just half that amount ( Helyar 1994b). A five-year agreement signed in 1995 with NBC, ESPN, the Fox Network, and Prime Liberty Media Cable guarantees each team $11 million per year but provides for nonpayment in the event of a work stoppage ( Koenig 1995). It is not clear that this latest television deal signals a return to the rapid and seemingly endless media revenue growth that MLB owners enjoyed in the 1980s.
4.
In 1991, local media revenue ranged from a high of $45 million for the New York Yankees to a low of $3 million for the Seattle Mariners [Quirk and Fort ( 1992), 506-509]. In the American League, visiting teams receive 20% of gate receipts; in the National League, they get 49 cents per ticket sold [ Zimbalist ( 1992b), 57].
5.
Knowles, Sherony, and Haupert ( 1992) also included urban unemployment rate as an explanatory economic variable, but its coefficient had neither the expected negative sign nor statistical significance.
6.
The National League modified its official attendance definition to match that of the American League prior to the beginning of the 1994 season.
7.
The Fan Cost Index is compiled annually by Team Marketing Report. (See Wendel [ 1994]). It includes the price of four average-priced tickets, four hot dogs, four small sodas, two small beers, two game programs, two twill baseball caps, and parking. We subtracted the cost of the tickets to estimate the cost of complementary goods and services for each major league team. Our assumption that the index reflects differences across teams in the costs of complementary products does not require that a fan actually

-29-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
Baseball Economics: Current Research
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 230

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.