Is the Grass Greener? Switching Costs and Geographic Proximity in the High Status Affiliations of Professional Baseball
Managerial and Decision Economics, 38(2), 95-108.
35 Pages Posted: 20 Jun 2015 Last revised: 19 Apr 2018
Date Written: 2017
Professional baseball operates a tiered system of talent development facilitated by alliances between Minor League Baseball (MiLB) clubs and higher status Major League Baseball (MLB) parent teams. This study applies management theory to advance the literature on MiLB demand modeling by proposing and testing a new set of demand determinants based on interorganizational alliance principles. Team executives at the AA level should be alert to the high cost of switching team alliances and of changing to a parent club in closer geographical proximity. At the AAA level, affiliation with a winning MLB club exerts a positive effect on AAA demand.
Keywords: sport economics, sports economics, baseball, switching costs, strategic alliances, status
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