Loss Aversion, Team Relocations, and Major League Expansion
Endowment Eï¬€ect, Loss aversion, major league sports, bargaining | Endowment Effect; Loss aversion; major league sports; bargaining
Professional sports teams receive large public subsidies for new facility construction. Empirical research suggests that these subsidies cannot be justified by tangible or intangible economic benefits. We develop a model of bargaining between local governments and teams...