Competitive Balance and Game Attendance in the NFL There are many ways to see if an industry is functioning properly. In industries like sports leagues competitive balance is vital. Competitive balance refers to the uncertainty of outcomes in a competition (Econ 282 8). In essence this means that people are willing to pay more for games where there is some uncertainty of income. It can be argued that competitive balance is achieved when the level of uncertainty is close to those obtained through a coin toss (Econ 282 8). It is commonly believed that achieving the highest level of competitive balance possible in a league makes the league more attractive to fan/customers. This essay will argue that there is no direct correlation between team...The end:
.....uch of an advantage many fans loss interest and attendance drops. So to maximize attendance levels the NFL needs to ensure that there is competitive balance within the league. A lower HHI is a good indicator that this competitive balance has been achieved. Appendix 1 s Appendix 2 Raw Data (Attach Excel File) Works Cited Econ 282, “Lecture 5” in Econ 282, October 6, 2011. ESPN, “NFL Team Attendance by Year” on the ESPN Website, 2011, Retrieved November 6, 2011 from http://espn.go.com/nfl/ attendance/_/year/ Pro-Football Reference, “Team Statistics” in Pro-Football Reference, 2011, retrieved November 6, 2011 from http://www.pro-football-reference.com/teams/was. Urdan, Timothy C., Statistics in Plain English, Taylor and Francis US. Ltd., 2010.