Scarcity, Opportunity Cost and Competition impact our decision-making moment to moment. This makes economics the basis of life as we know it, after God. Nothing that people value is free, someone pays the cost. To gain that thing of value, scarce resources are given up and cannot be given up again for a different thing of value. And we all are competing to capture those scarce resources.
Showing posts with label Michigan State Spartans Detroit economic impact. Show all posts
Showing posts with label Michigan State Spartans Detroit economic impact. Show all posts
Thursday, April 2, 2009
Michigan State Basketball and Detroit, is it really the impact it's proclaimed to be?
So many (ESPN, Detroit News, THE HUGE SHOW, etc.) have proclaimed the amazingly great economic impact having the Spartans of Michigan State play in the Final Four at Detroit's Ford Field.
I must disagree.
First, the implication made is that so many fans in the state will flock down to Detroit to watch the game in the venue that will set a record for number of spectators for a NCAA tournament.
Fact, the tickets were sold via lottery and such (except for some withheld for the schools, a paltry sum) over a year ago! Some fans may spring for the higher asking prices via Stub Hub and such, but one must realize that this payment made by Spartan fans in Michigan will be dollars leaving the state, not being spent in the state...
Secondly, an implication that so many more fans will pack Detroit 'watering holes' to see the game (see fact above on fans getting into the game) will boost sales significantly.
Fact, this denies that this occurance is independent with respect to the Spartan faithfull and the location of the game(s). The sports bars will be packed regardless of where the Spartans play, across the street or across the country.
Fact, the hotel rooms that may have been reserved by fans of out-of-state teams will be reduced by a quarter or more. Most fans (given the doom-and-gloom prognostications) are denizens of this great state, and are assumed to be in poorer financial situations, hence they cannot afford to splurge on a room in a hotel in Detroit when these same people could just drive an hour or three to Detroit, catch the activity then head back home.
So, don't believe everything you hear/read.
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