November 13, 2006

Are sports teams an inferior good?

Are sports franchises in your city an inferior good?Experience lately would suggest so. Wealthy areas like San Francisco and Seattle have denied public funding for franchises. San Francisco paid nothing for the new Giants stadium, they rebuffed the 49ers who are now exploring options in Santa Clara. Seattle recently did the same to the Super Sonics. Meanwhile, impoverished areas like Detroit or Green Bay have thriving sporting franchises that I'm receive huge amounts of public financing (in the case of Green Bay it is publicly owned).