Called Up to the Big Leagues: An Examination of the Factors Affecting the Location of Minor League Baseball Teams
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In this study we analyze the factors that determine whether a particular city has a minor league baseball team and the level at which that team competes. Using the generalized ordered logit model we determine that higher population, personal income, and time from nearest Major League Baseball team all have a positive effect on the city's having a minor league baseball team and having one at a higher level. The finding that personal income has a positive effect on the level of the baseball team, combined with past studies suggesting income does not affect minor league baseball attendance, leads us to conclude that higher income fans cannot take off more time to attend baseball games but want a higher quality product when they do attend. Rankings of the most over-represented and under-represented cities, based on the model, are presented.