Market Power

Musings by an academic economist on the power of markets and the power over markets.

Monday, December 20, 2004

Not Everyone is Convinced

Some folks in Indy believe that the Colts bring economic development to Indianapolis. See here. A quote:

"Brent Compton, 34, Terre Haute, said the impact of the team reaches far beyond Central Indiana. Heading to Sunday's game with several other season-ticket holders from the Terre Haute area, Compton said the firm he works for, Pacesetter Sports, is a good example.
"We do a lot of business with the Colts, and we also sell a lot of team merchandise," he said. "When they are winning, it is even better. That just creates more demand.""

I have no doubt that having the Colts in Indianapolis creates demand for a team that sells sportswear, but where does that demand come from? It doesn't just materialize from out of nowhere. When someone buys a Colts sweatshirt, that's a sweater not bought from the Gap.

Another quote:

""I'm a fan, even though I've never been to a game," said Williams, executive director of the Christamore House community center on the Westside.
"I believe there is a lot of value in attracting people and businesses. And they do create some jobs," he said."

What type of jobs are created? What types of jobs are displaced?

If you haven't read John Palmer's piece on why professional sports are not a catalyst for economic development, here's the link to his paper.