The National Basketball Association is in the market of maximizing profits and minimizing costs. This study aims to determine one aspect of NBA profits. The research presented in this study will test how Superstars affect revenues in the NBA, using a measure of attendance. Formed through a review of previous literature, the null hypothesis states that an increase in Superstars will not cause an increase in attendance. A micro-founded theoretical framework is created to reject this null hypothesis. Four teams from the National Basketball Association were chosen at random, and observed over three seasons. Using this panel data, a fixed effects regression model is formed to test this hypothesis. After correcting for heteroskedasticity the empirical results allowed this study to accept the null hypothesis and conclude that an increase in Superstars will not increase revenues in the National Basketball Association.
Stoermer, Zannah, "Superstar Phenomenon: a Study on the Impact of Superstars on Revenues in the National Basketball Association" (2011). Senior Independent Study Theses. Paper 760.
Bachelor of Arts
Senior Independent Study Thesis
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