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

See all articles by Nola Agha

Nola Agha

University of San Francisco

Joe Cobbs

Northern Kentucky University - College of Business

Date Written: 2017

Abstract

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

Suggested Citation

Agha, Nola and Cobbs, Joe, Is the Grass Greener? Switching Costs and Geographic Proximity in the High Status Affiliations of Professional Baseball (2017). Managerial and Decision Economics, 38(2), 95-108.. Available at SSRN: https://ssrn.com/abstract=2620370

Nola Agha (Contact Author)

University of San Francisco ( email )

2130 Fulton Street
San Francisco, CA 94117
United States

Joe Cobbs

Northern Kentucky University - College of Business ( email )

Highland Heights, KY 41099
United States

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