nep-spo New Economics Papers
on Sports and Economics
Issue of 2010‒03‒28
six papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Game Information, Local Heroes, And Their Effect On Attendance: The Case Of The Japanese Baseball League By Yamamura, Eiji
  2. Football Championships and Jersey Sponsors' Stock Prices: An Empirical Investigation By Michael Hanke; Michael Kirchler
  3. The Impact of the Commonwealth Games 2010 on Urban Development of Delhi -An Analysis with a Historical Perspective from Worldwide Experiences and the 1982 Asian Games By Vinayak Uppal; Debjani Ghosh
  4. Mega-Events and Sectoral Employment: The Case of the 1996 Olympic Games By Arne Feddersen; Wolfgang Maennig
  5. Risk Taking Behavior in Tournaments: Evidence from the NBA By Grund, Christian; Höcker, Jan; Zimmermann, Stefan
  6. Marginal revenue product and salaries: Moneyball redux By Rockerbie, Duane W

  1. By: Yamamura, Eiji
    Abstract: In the Japanese Professional Baseball League, the starting pitcher is announced prior to the game in the Pacific League but not in the Central League. I attempt to investigate how the release of information concerning a starting pitcher prior to the game affects attendance. My major findings are: (1) In the Pacific League, the salary (and overall number of wins) of the home team’s starting pitcher is positively related to attendance, while that of the visiting team is not. (2) In the Central League, neither the salary (or the overall number of wins) of the home team’s starting pitcher nor that of the visiting team affect attendance.
    Keywords: Game information; attendance; Japanese Professional Baseball League
    JEL: L83
    Date: 2010–03–10
  2. By: Michael Hanke; Michael Kirchler
    Abstract: Corporate sports sponsorship is an important part of many companies’ corporate communication strategy. We take the example of major football tournaments to show that sponsorship indeed affects the sponsor’s (stock) market value. We find a statistically significant impact of football results (at an individual game level) of the seven most important football nations at European and World Championships on the stock prices of jersey sponsors. In general, the more important a match and the less expected its result, the higher its impact. In addition, we find a form of “mere exposure”-effect which contradicts the efficient markets hypothesis.
    Keywords: Sports sponsorship, Advertising, Stock market efficiency
    JEL: G14
    Date: 2010–03
  3. By: Vinayak Uppal; Debjani Ghosh
    Abstract: The paper raises some hard questions that need to be answered before one can conclude that events such as Common Wealth Games has a positive effect on the host community. Can the financial requirements for such an event be possible to generate? Some other questions that arise out of such events, with particular relevance in this paper, is its impact on the urban scenario. Will the event lead to rampant and unchecked development, possibly unplanned? Will the infrastructure created be beneficial post-event or will it remain under utilised? Will the city’s infrastructure be able to bear the strain of additional visitors that flood the city during such an event? Will the event prove to be a hindrance to the city’s residents during the event? [Working paper No. 06- 12].
    Keywords: city, Asian Games, Commonwealth Games, Olympics, Sports Authority of India, Sports facility structure, Ministry of Youth Affairs, sports infrastructure, development, financial requirements, urban scenario, community, infrastructure, sports event,
    Date: 2010
  4. By: Arne Feddersen (Chair for Economic Policy, University of Hamburg); Wolfgang Maennig (Chair for Economic Policy, University of Hamburg)
    Abstract: This paper contributes to the analysis of large sporting events using highly disaggregated data. We use the 1996 Olympic Games in Atlanta, which are also outstanding as one of the very few large sporting events where ex post academic analysis found significant positive effects. This paper extends earlier studies in several ways. First, monthly rather than quarterly data will be employed. Second, the impact of the 1996 Olympics will be analyzed for 16 different sectors or subsectors. Third, in addition to standard DD models, we use a non-parametric approach to flexibly isolate employment effects. Regarding the Olympic effect, hardly any evidence for a persistent shift in the aftermath of or the preparation for the Olympic Games is supported. We find a significant positive employment effect in the monthly employment statistics exclusively during the staging of the Olympic Games (July 1996). These short-term effects are concentrated in the sectors of “retail trade”, “accommodation and food services”, and “arts, entertainment, and recreation”, while other sectors showed no such effects.
    Keywords: Olympic Games, Economic Impact, Ex-post Analysis, Employment, Sectoral Data
    JEL: H54 R12 L83
    Date: 2010–03–15
  5. By: Grund, Christian (University of Würzburg); Höcker, Jan (University of Würzburg); Zimmermann, Stefan (University of Würzburg)
    Abstract: We empirically explore the relevance of risk taking behavior in tournaments. We make use of data from the NBA season 2007/2008 and measure risk taking by the fraction of three-point shots. Current heterogeneity of teams is taken into account by intermediate results. It turns out that indeed teams who are behind increase the risk in terms of more three-point attempts. We additionally analyze the consequences of this change in behavior. Enhanced risk taking is inefficient for the vast majority of cases and only beneficial in terms of a higher winning probability if a team is behind with a rather large amount of points. We discuss possible explanations for these decision errors.
    Keywords: basketball, NBA, risk taking, tournaments
    JEL: M5
    Date: 2010–03
  6. By: Rockerbie, Duane W
    Abstract: Scully (1974) used a two equation regression model to estimate a baseball player’s salary to compare to the actual salary the player earned in order to determine if a player is paid his net marginal revenue product. We replicate the spirit of that paper, but introduce several useful innovations to estimate net marginal revenue products for a large sample of free-agent baseball players. Our results suggest that the highest paid free agents are overpaid, while all other free agents are underpaid or paid appropriately. We found no evidence for the notion that some clubs may be more adept at finding “bargain” free agents.
    Keywords: net marginal revenue product; free agents; baseball
    JEL: J24 L83
    Date: 2010–03–01

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