Chapter 4, Problem 1DQ

To determine

Percentage change in rooting of fans.

Explanation of Solution

The NFL, NBA, and MLB are the main sports events or leagues that are prominent in the US economy. The NFL stands for Football, NBA for basketball, and MLB for baseball. These are the main sports leagues in the US economy that has a monopoly in the economy. The leagues can decide which teams should be allowed to participate in the league and determine the prices of tickets sold for the leagues.

When there are two teams in the major leagues from the same place, the sports fans will prefer the team which has the highest success rate in the matches. It is evident from the history of the NFL, NBA, and MLB that the number of fan followers and viewers in the gallery decreased by 10 percent to more than 40 percent from 2008 to 2018. This is not the case with all the teams that play in the leagues. The teams with higher success rates do not face such drop issues. That means the performance of the team determines the number of viewers and fans for a team.

The percentage of fans rooting their interest in one of the teams will remain rooted to the team until when the team maintains a successful streak or keeps winning often in the leagues. When the team fails to fulfill these demands from the fans, the fans will start to change their rooting interests toward the other team. This is because the psychology of the people does not allow them to spend too much on the tickets and argue for the team that ends up failing in the matches.

The change in the percentage of fans rooting their interest between the two teams that are present in the NFL, NBA, and MLB cannot be determined, as there will be very strong fans and weak fans for each team. The strong fans will remain rooted to their team whatever happens in the leagues, whereas the weak fans will keep shifting their rooting between the teams based on their performances in the leagues.

Economics Concept Introduction

Monopoly: Monopoly is a market structure where there is only a single seller in the market and there are no close competitors present in the market. The complete market power will be with the single producer and the price will be determined by the seller.