Competitive Balance and Attendance in Major League Baseball: An Empirical Test of the Uncertainty of Outcome Hypothesis

Babatunde Buraimo () and Rob Simmons ()
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Rob Simmons: Lancaster University

International Journal of Sport Finance, 2008, vol. 3, issue 3, 146-155

Abstract: After controlling for a number of plausible influences on matchday attendance in the English Premier League, and with appropriate recognition of the censoring problem in stadium capacities, we find clear evidence that an increase in uncertainty of outcome is associated with reduced gate attendance. The conventional uncertainty of outcome hypothesis proposes precisely the opposite effect. We interpret this as suggesting that fans at EPL games, who are predominantly supporters of the home team, prefer to see their team play a much inferior team (and beat that team) rather than attend a game that is predicted to be close in score. Essentially, home fans prefer to see their team win rather than watch a draw or see the home team defeated.

Keywords: attendance; outcome uncertainty; tobit (search for similar items in EconPapers)
JEL-codes: L83 (search for similar items in EconPapers)
Date: 2008
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International Journal of Sport Finance is currently edited by Arne Feddersen, Babatunde Buraimo, Joachim Prinz and Jane Ruseski

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