Document Type

Article

Publication Date

8-2007

Abstract

The National Basketball Association claims to sell entertainment. Part of that entertainment is dose, competitive contests with uncertain outcomes. Howeyer, hometown fans want the home team to win. Hence, optimal probability that the home team wins a game from the perspective of maximizing demand, lays somewhere between 0.5 and 1.0. Using data from individual games for the 2001-02 season, this optimal probability was estimated to be approximately 0.66. Fans want their home team to have about twice the chance to win a game as the visiting team. Reprinted by permission of the publisher.

Comments

Article published in International journal of Sport Finance, 2007, 2, 130-141, © 2007 West Virginia University

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