Question

1. Why do NFL, NBA, and NHL teams tend to sell out while MLB teams do not

2. If P = $150 − 0.005 × Q, what is the equation for total revenue?

3. What is the relationship between market size and win in North American pro sports? Answer this question using both deductive and inductive analysis.

Answer 1

Solution 1

NFL, NBA and NHL tickets get sold out due to higher global presence and brand recognition, higher aggregate demand and frequent broadcasting rights across various parts of countries which generate fanbase for live experience.

Solution 2

Total revenue= P×Q=150Q- 0.005Q^2

Solution 3

Market size corresponding to higher probability of winning media rights and merchandise rights as the market size suggests higher fanbase and higher reach across audiences which thus leads to higher revenues to tournament owners. Hence market size is proportional to winning rights.