Abstract
In 2010, a plan to finance a new spring training stadium for the Cubs through a ticket surcharge on all games in the Cactus League was proposed. We find that the Cubs increase attendance when they are the away team by about 37%. Thus, the surcharge would be economically justified as long as the price elasticity of tickets is less than 0.32, which many prior studies find to be the case. This tax provides one of the few examples in which the cost of a subsidized stadium would be born primarily by the group that benefits the most from the arrival of the subsidized team.
Recommended Citation
Davis, M. C., Palsson, C., & Price, J. (2013). Taxing the Opposition: Cactus League Attendance and the Efficiency of the 'Cubs Tax'. International Journal of Sport Finance, 8(2), pp. 157-170. West Virginia University.
Department(s)
Economics
Keywords and Phrases
Attendance; Baseball; Stadiums; Taxes
International Standard Serial Number (ISSN)
1558-6235; 1930-076X
Document Type
Article - Journal
Document Version
Final Version
File Type
text
Language(s)
English
Rights
© 2013 West Virginia University, All rights reserved.
Publication Date
01 May 2013
