nep-spo New Economics Papers
on Sports and Economics
Issue of 2016‒04‒09
two papers chosen by
João Carlos Correia Leitão
Universidade da Beira Interior

  1. Common Factors in Major League Baseball Game Attendance By Young Hoon Lee
  2. Academics vs. Athletics: Career Concerns for NCAA Division I Coaches By Christopher Avery; Brian Cadman; Gavin Cassar

  1. By: Young Hoon Lee (Department of Economics, Sogang University, Seoul)
    Abstract: This paper applies a panel data model with observed common factors to Major League Baseball (MLB) panel data from 1904 to 2012 to analyze attendance. In particular, it aims to identify common factors. The empirical results suggest that MLB fan preferences were simple in the early years (1904?1957) with respect to common factors and then became multi-faceted in later years (1958?2012), because the number of significant common factors increased from four to seven. Time trends and per capita gross domestic product were significant over the whole sample period, but outcome uncertainties and offensive performance, such as slugging performance, became newly significant common factors influencing attendance in later years. This indicates that fans consider not only their home team¡¯s characteristics but also the characteristics of the away teams; then, in the modern era, it became critical for the league to implement elaborate business measures to promote competitive balance and slugging performance.
    Keywords: Attendance, outcome uncertainty, common factors, factor loading, panel data, competitive balance
    Date: 2016
  2. By: Christopher Avery; Brian Cadman; Gavin Cassar
    Abstract: We analyze the promotions and firings of NCAA Division 1 college basketball and college football coaches to assess whether these coaches are rewarded for the academic performance of their players in promotion and retention decisions. We find that an increase in Academic Progress Rate, as measured by the NCAA, for a college team in either sport significantly reduces the probability that the coach is fired at the end of the season. We find little to no evidence that an increase in the Academic Progress Rate enhances the chances of advancement (in the form of outside job offers) for these coaches.
    JEL: I20 I23 J24 M51
    Date: 2016–03

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