Research and Reviews When Is the Honeymoon Over? Major League Baseball Attendance 1970–2000
This study tests for the presence of a honeymoon effect in Major League Baseball by using a set of panel data for the period 1970 to 2000. It expands on the existing attendance demand literature by incorporating a theoretical model of attendance and price, imposing a more flexible form for the honeymoon effect, and distinguishing multipurpose stadiums from vintage and current baseball-only parks. The honeymoon effect for attendance and ticket price is substantial, and it continues with only a modest decline over the first 8 to 10 years. We conclude that a new baseball-only park that replaces an older multipurpose stadium will generate an additional $228 million in ticket revenue over 15 years. Although this is less than the cost of constructing a new facility, additional revenue sources might be sufficient to eliminate the need for public subsidies.