The absolute level of quality simply refers to the level of quality, for example, the difference between minor and major leagues. The relative level of quality describes the competitiveness of a team once the absolute level is determined.
Uncertainty of outcome hypothesis:
fans want their teams to win in close games, and when it comes to postseason, fans expect a reasonable chance that their team will appear, not every year, but often.
The more fans in a given location are willing to pay for quality, the higher the quality of the team they will get to enjoy. Demand shifters: preferences; fan income; the price of other goods; expectation, population
Quality is one of the more important preference elements in the determination of demand.
Nearly all of the money in sports comes from fans.
In sports, market power is derived from the fact that teams occupy exclusive geographic territory.
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