Pelnar, Gregory (2009): Competition and Cooperation between Professional Sports Franchises: The Impact on Ticket Prices.
Download (513Kb) | Preview
An important issue in many antitrust lawsuits involving professional sports leagues and their member teams is the extent to which franchises within the same, and across different, professional sports leagues compete with one another for fans and advertisers. Complicating the issue is the fact that some sports franchises also cooperate with other franchises in the same or different leagues by, for example, participating in a joint venture to build and operate the stadium in which they will play their games or a regional sports network joint venture to televise their games. An extreme form of cooperation is common ownership: some franchises in different sports leagues have common ownership. This study investigates the impact of competition and cooperation among the franchises of the four major professional sports leagues (i.e., the National Football League, National Basketball Association, National Hockey League, and Major League Baseball) on ticket prices for the 2008 season. The regression results suggest that the existence of one or more rival sports franchises in the same metropolitan area does not have a statistically significant impact on ticket prices. On the other hand, there is at best weak evidence that cooperation between sports franchises impacts ticket prices. These findings are consistent with a number of alternative hypotheses.
|Item Type:||MPRA Paper|
|Original Title:||Competition and Cooperation between Professional Sports Franchises: The Impact on Ticket Prices|
|Keywords:||sports leagues; antitrust; National Football League; National Basketball Association; National Hockey League; Major League Baseball|
|Subjects:||L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L11 - Production, Pricing, and Market Structure; Size Distribution of Firms
L - Industrial Organization > L8 - Industry Studies: Services > L83 - Sports; Gambling; Recreation; Tourism
L - Industrial Organization > L4 - Antitrust Issues and Policies > L40 - General
|Depositing User:||Gregory Pelnar|
|Date Deposited:||11. Oct 2009 07:18|
|Last Modified:||17. Feb 2014 04:58|
Boyd, David W., & Laura A. Boyd. 1998. “The Home Field Advantage: Implications for the Pricing of Tickets to Professional Team Sporting Events,” 22 Journal of Economics and Finance 169-79 (Summer/Fall).
Brown, Matthew T., Daniel A. Rascher & Wesley M. Ward. 2006. “The Use of Public Funds for Private Benefit: An Examination of the Relationship Between Public Stadium Funding and Ticket Prices in the National Football League,” 1 International Journal of Sport Finance 109-18 (May).
Fort, Rodney. 2004. “Subsidies as Incentive Mechanisms in Sports,” 25 Managerial and Decision Economics 95-102.
Hendry, David F. 1995. Dynamic Econometrics, Oxford University Press.
Pelnar, Gregory J. 2007. “Antitrust Analysis of Sports Leagues,” unpublished manuscript. Available at SSRN: http://ssrn.com/abstract=1021365.
Rishe, Patrick James, & Michael J. Mondello. 2003. “Ticket Price Determination in the National Football League: A Quantitative Approach,” 12 Sport Marketing Quarterly 72-79.
Winfree, Jason A., Jill J. McCluskey, Ron C. Mittelhammer & Rodney Fort. 2004. “Location and Attendance in Major League Baseball,” 36 Applied Economics 2117-24.
Wong, John Chi-Kit. 2005. Lords of the Rinks: The Emergence of the National Hockey League 1875-1936, University of Toronto Press.