Market Power in Baseball's Output Market
This semester, while lecturing about the market power held over host cities by Major League Baseball, I rattled off the names of a few big cities that may be able to (privately) support a MLB franchise. I mentioned Jacksonville, New Orleans, and Charlotte. I forgot Las Vegas. Looks like Las Vegas wants to replace its AAA franchise with a MLB franchise. The Marlins are interested in looking elsewhere. Dan Le Batard of the Miami Herald chimes in here.
The Marlins haven't been able to get public funding for a new baseball-only stadium. Le Batard complains:
"We stink as a baseball town.
Not one but two championships in the past seven years?
And we still have one of the worst attendances anywhere in major-league sports?"
Maybe this is evidence to why the Marlins are looking for public funding for a stadium: there's not enough private money available because it's simply not a good investment in Miami. The population's demand for baseball is not high enough.