Revisiting the Uncertainty of Outcome Hypothesis and the Loss Aversion Hypothesis in the National Basketball Association: Adding a Predicted Game Quality Perspective

Moonsup Hyun, Gareth J. Jones, Wonsok (Frank) Jee, Jeremy S. Jordan, James Du and Yohan Lee

Journal of Sports Economics, 2023, vol. 24, issue 8, 1076-1096

Abstract: The unparalleled popularity of major professional sports leagues in the United States has led to numerous sold-out events, regardless of the uncertainty surrounding the game's outcome. This phenomenon prompts us to examine the relationship between outcome uncertainty and attendance, specifically in matchups between high-quality teams compared to games involving lower-quality teams in the National Basketball Association (NBA). Based on our analyses, we have discovered a notable distinction in the relationship between outcome uncertainty and attendance in high-quality games. When analyzing high-quality games, we observed a linear relationship between these two variables that was only marginally significant. Conversely, when exploring nonhigh-quality games, a U-shaped relationship emerged between outcome uncertainty and attendance. While the attendance of nonhigh-quality games was influenced by varying levels of uncertainty, high-quality games attracted fans irrespective of the outcome uncertainty. This research provides valuable insights into the factors that contribute to the popularity and attendance of NBA games.

Keywords: outcome uncertainty; game quality; attendance; loss aversion (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:jospec:v:24:y:2023:i:8:p:1076-1096

DOI: 10.1177/15270025231197427

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