Specifically, the UOH
correctly predicted that demand deceased as scoring margin increased in each market type.
Also, we find very limited support for the UOH and, upon reflection on the choice of measures for GU, suggest that the previous Lee and Fort (2008) finding that PU matters for MLB is sensitive to the choice of measurement.
Finally, the impact of our UOH measures on attendance is estimated, taking into account break points in the data.
1975; Forrest & Simmons, 2002, 2006) or an effect not supporting the UOH
We find that uncertainty of outcome, as captured by the point spread on the game, does not increase attendance at games, contrary to the predictions of the UOH.
In a recent working paper, Coates, Humphreys and Zhou (2012) develop a model of consumer behaviour under uncertainty to motivate the UOH that includes both decisions under uncertainty and reference-dependent consumer preferences that account for spectator's expectation of the closeness of the contest.
Uncertainty of outcome can be traced to the prior mentioned UOH (Rottenberg, 1956; Neale, 1964), which theorizes that fan attendance will increase as game outcomes become more uncertain.
Fort and Maxcy (2003) additionally comment on competitive balance, arguing that competitive balance research is necessary from both a UOH perspective, as well as an analysis of competitive balance (ACB) perspective.
Address : UOH
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Unlike with the UOH, fan welfare is not necessarily negatively affected by a dominant team as long as each fan's team has a chance of postseason play.
More specifically, the relative standard deviation statistic reflects an attempt to recognize CB for game-by-game, and possibly for in-season, performance as a function of the UOH.
Early research on the UOH
focused on relatively aggregated measures of demand like total season attendance in sports leagues, or total season attendance at home games played by teams in sports leagues.