to Increase Revenue
Fans often take scheduling for granted. At the beginning of the season, they may glance at a schedule to see when the most desirable opponents will come to town. College football and basketball fans pay attention to strength-of-schedule rankings, since not all team schedules are created equal.
Economists have applied the Coase Theorem to the movement and distribution of playing talent in professional team sports. The theorem states that resources will be efficiently deployed as long as property rights are well defined and there are low transaction costs. Transaction costs are the costs of finding someone to deal with, the cost of negotiation, and the cost of monitoring and enforcing an agreement. Economists have not applied the theorem to other aspects of team sports. For instance, how does the theorem apply to allocating another valuable property right: holiday home dates in major league baseball?
For much of major league baseball’s history, holiday doubleheaders have been among the best-drawing playing dates. During the 1930s and the period immediately following World War II, the Major Leagues usually allocated the three holidays—Memorial Day, Fourth of July, and Labor Day—on an equal basis. Teams would alternate having home games on Memorial Day and Labor Day one year and then the Fourth of July the next. Due to the differences in on-the-field abilities of the teams, as well as the large disparities in stadium capacities and popu-