Saturday, August 26, 2006

Baseball box office

Baseball fansNow for a quick glimpse at the flip side of MoneyLaw: what law and allied disciplines have to say about the business of baseball. Mark McDonald and Daniel A. Rascher recently posted Does Bat Day Make Cents?: The Effect of Promotions on the Demand for Baseball:
A primary objective of sport marketers in the professional sport setting is to develop strategies to increase game attendance. Historically, one of the strategies to accomplish this goal has been the utilization of special promotions. This paper studied the impact of promotions on attendance at professional sport games. Specifically, this research examines (1) the overall effect of promotions on attendance, and (2) the marginal impact on attendance of additional promotional days. Using a data set containing 1500 observations, we find that a promotion increases single game attendance by about 14%. Additionally, increasing the number of promotions has a negative effect on the marginal impact of each promotion. The loss from this watering down effect, however, is outweighed by the gain from having an extra promotion day.
Hat tip to Jurisdynamic Idol Andrea Matwyshyn for spotting this item.


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