How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League

How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and... Professional sports league franchises are both on-field competitors and business partners. In this paper, we examine whether local franchise characteristics are associated with the consumption of goods that are produced by other franchises within the same league. Specifically, we investigate how uncertainty over whether the local market team reaches the postseason affects interest in out-of-market National Football League broadcasts. We find that consumers possess a conditional interest in other league contests depending on the degree to which the local franchise is in the race to reach the playoffs. This effect increases at a diminishing rate and reaches a maximum when local franchise playoff probability is approximately 60 %. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

How Success and Uncertainty Compel Interest in Related Goods: Playoff Probability and Out-of-Market Television Viewership in the National Football League

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Publisher
Springer US
Copyright
Copyright © 2015 by Springer Science+Business Media New York
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-015-9479-7
Publisher site
See Article on Publisher Site

Abstract

Professional sports league franchises are both on-field competitors and business partners. In this paper, we examine whether local franchise characteristics are associated with the consumption of goods that are produced by other franchises within the same league. Specifically, we investigate how uncertainty over whether the local market team reaches the postseason affects interest in out-of-market National Football League broadcasts. We find that consumers possess a conditional interest in other league contests depending on the degree to which the local franchise is in the race to reach the playoffs. This effect increases at a diminishing rate and reaches a maximum when local franchise playoff probability is approximately 60 %.

Journal

Review of Industrial OrganizationSpringer Journals

Published: Aug 19, 2015

References

  • The demand for Australian rules football
    Borland, J
  • The selective nature of knowledge networks in clusters: Evidence from the wine industry
    Giuliani, E

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