Brad Humphreys

Brad Humphreys
West Virginia University | WVU · Department of Economics

PhD The Johns Hopkins University

About

234
Publications
113,191
Reads
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5,883
Citations
Citations since 2017
57 Research Items
3021 Citations
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20172018201920202021202220230100200300400500
20172018201920202021202220230100200300400500
20172018201920202021202220230100200300400500
Additional affiliations
July 2013 - present
West Virginia University
Position
  • Professor
Education
September 1987 - May 1995
Johns Hopkins University
Field of study
  • Economics

Publications

Publications (234)
Article
Full-text available
Airborne transmission of the COVID‐19 virus increased the need for health policies to reduce transmission in congregate settings associated with minimal risk before the pandemic. While a large literature estimates tradeoffs between policies designed to reduce negative health outcomes, no empirical research addresses consumer willingness to pay (WTP...
Article
Local governments routinely subsidize sports stadiums and arenas using the justification that hosting professional franchises produces economic development and social benefits in the community. The prevalence of venue subsidies generated an extensive and vibrant research literature, which spans over 30 years and includes more than 130 studies. We c...
Article
Domestic violence generates long-term effects on offenders, victims, and other household members. While coercive behavior explains some family violence, aggression can also be reactive, triggered by emotional stimulus. Insight into triggers of family violence can inform policy and mitigate abusive behavior. Card, D. and G. B. Dahl. (2011). “Family...
Article
Prior evidence reveals a causal relationship between sporting events and crime. If sporting events increase crime, they also increase public spending on policing. We analyze the crime-police spending relationship using data from the Annual Survey of Public Employment & Payroll over the periods 1979–1995 and 1997–2010 for a sample of 52 US municipal...
Article
U.S. cities have recently experienced a boom in new sports facility construction. Although these facilities can provide benefits to local residents, they may also generate negative externalities, making dwellings near a facility less desirable. Using a hedonic spatial difference-in-differences model, we analyze the impact of proximity to the Staple...
Article
Companies engaging celebrity athlete endorsers or sponsoring sports teams experience negative stock price impacts if athletes engage in inappropriate behavior. Most previous research assumed homogeneity in the impact of misconduct on stock prices. The authors investigated the possibility that different types of misconduct generate different impacts...
Article
Research Question : The study asks whether bookmakers alter the closing betting odds on European football matches due to potential variation in team incentives to exert effort to win games based on position in the standings. Effort is a multidimensional concept and teams have many ways to alter effort supplied in a match. For example, the players i...
Article
The relationship between gambling and health has important economic and public policy implications. We develop causal evidence on this relationship exploiting regional variation in access to legal gambling. Empirical models treat gambling as an endogenous regressor in explaining variation in health outcomes. Results from instrumental variable and b...
Article
Full-text available
Road maintenance constitutes a significant component of public transportation spending at all levels of government. Formulation of efficient transportation infrastructure policy requires information about factors affecting road and traffic conditions. We generate the first causal evidence that decreasing pavement quality impacts vehicle crash rates...
Article
Full-text available
We use data from the Canadian Survey of Household Spending to analyze the relationship between household consumption of four categories of leisure goods and services: sports betting, exercise, watching television, and attending live sporting events. Spending on exercise can affect household health. Recent policy changes expanded access to legal spo...
Article
The contingent valuation method (CV) has long been used to estimate nonmarket values of environmental and other public goods and amenities. Recently, life satisfaction (LS) measures have been used to estimate nonmarket values. This article empirically compares CV and LS measures of welfare. We elicit willingness‐to‐pay (WTP) estimates for medals wo...
Article
Sentiment bias, defined as investment decisions made for reasons unrelated to fundamentals and related to popularity, represents a common research topic in finance and economics. Empirical research on sentiment bias frequently uses data from sports betting markets. While research generally finds evidence of sentiment bias, in particular, due to tea...
Article
Full-text available
Research Question: Does athlete off-field misconduct affect the stock price of sponsors of the athlete's team, stadium and league? No research on the impact of athlete off-field misconduct on indirect sponsors like team, stadium, or league sponsors exists.Research Methods: The paper employs quantitative analysis using an event study methodology. Th...
Article
We analyze habit formation in sports attendance utilizing rainfall as an unexpected, transitory shock to attendance costs. Using attendance data from Major League Baseball (MLB) and National Oceanic and Atmospheric Administration weather data, we analyze the impact of variation in game day weather conditions on current and future MLB attendance. Th...
Article
Economic models predict that “superstar” players generate externalities that increase attendance and other revenue sources beyond their individual contributions to team success. We investigate the effect of superstar players on individual game attendance at National Basketball Association games from 1981-1982 through 2013-2014. Regression models co...
Article
The uncertainty of outcome hypothesis (UOH) informs economists' understanding of consumer decisions to attend sporting events and team revenue generation. We develop a model of fan behavior based on standard expected utility methods which incorporates fan heterogeneity in terms of decisions to travel to away games and strong preferences for wins. T...
Article
We analyze the relationship between professional sports events and concerts held in LA's Staples Center and nearby hotel performance. Government‐led economic redevelopment projects often envision sports facilities as tourist magnets. Little evidence exists supporting links between sporting events and hotel demand. An empirical analysis exploiting e...
Article
We investigate the impact of superstition on prices paid by Chinese-American home buyers. Chinese consider 8 lucky and 4 unlucky. Lacking explicit buyer ethnicity identifiers, we develop a binomial name classifier, a machine learning approach applicable to any data set containing names, that allows for falsification tests using other ethnic groups,...
Article
The uncertainty of outcome hypothesis (UOH) informs economic models of fan attendance decisions, team revenue generation, and league outcomes. Despite this importance, little attention has been paid to the role of consumer preferences in motivating the UOH. We develop consumer choice models that generate predictions consistent with the UOH. These m...
Article
A growing body of research examines the effect of loss aversion (LA) on consumers’ decisions to watch or attend sporting events. Much of this research focuses on live game attendance. In contrast to the predictions of uncertainty of outcome hypothesis (UOH), loss-averse consumers prefer watching either potential upsets, or dominant performances by...
Article
This study explores the relationship between state cigarette taxes and state expenditures on health and hospitals. We address two major sources of endogeneity from (i) the relationship between tax rates and expenditure decisions and (ii) spatial dependence in expenditure policies by using tobacco production as an instrument for cigarette tax rates...
Article
The Appalachian Regional Commission (ARC) administers and partially funds investment projects designed to improve economic conditions in the Appalachian region, an area of persistent poverty and reduced economic opportunity in the eastern United States in and around the Appalachian mountains. Previous research on the effectiveness of ARC programs i...
Article
This article employs media framing theory to examine the debate over public funding to support elite athlete development. More specifically, it examines the discourse in Canadian newspaper coverage of the 2010 Vancouver Olympic Games surrounding funding for elite athletes. The article first provides an overview of government funding support for eli...
Article
Full-text available
We analyze decisions to comply or cheat on NCAA recruiting regulations in the context of repeated interactions. Teams possess private information about resources devoted to football programs, recruiting effort made by rival programs, and rival program behavior. We test for evidence that the behavior of NCAA Division IA football programs conforms to...
Article
Municipalities regulate sexually oriented businesses (SOBs) through the “secondary effects” doctrine, which justifies limiting First Amendment speech protections inside SOBs. Negative effects of SOBs on nearby neighborhood quality is a frequently cited secondary effect. Little empirical evidence exists that SOBs generate such negative externalities...
Article
Exercise is an important part of a healthy lifestyle and influences a variety of health outcomes. Regions vary in their levels of exercise due to geography, climate, culture, and policy. The extent to which a country's policies are consistent with economic freedom has been found to be positively associated with greater participation in physical act...
Chapter
Sports betting is a popular economic activity in the United States. Sports betting can generate some negative externalities like disordered gambling and increased incentives to fix the outcomes of sporting events, and it also generates utility for those who wager responsibly. The United States has taken an unconventional approach to the regulation...
Article
Professional sports teams and facilities can generate negative or positive amenities to be capitalized into nearby property prices. We investigate the effect of the departure of two National Basketball Association teams in Seattle and Charlotte on nearby residential property values. Both arenas continued to operate after the teams left, so these de...
Article
A substantial theoretical literature identifies two general approaches to deterring non-norm conforming behavior: public law enforcement to monitor and punish proscribed behavior, and private (community) enforcement to discourage both illegal and legal norm defying activities. Recent papers highlight the importance of both enforcement approaches bu...
Article
Sporting events concentrate people in facilities on game day. No evidence currently exists linking sporting events to traffic conditions. We analyze urban mobility data from 25 metropolitan areas with Major League Baseball (MLB) teams over the period 1990–2014. MLB‐related travel accounts for at most 0.5 percent of annual metropolitan area vehicle‐...
Article
The social determinants of health include the communities in which people reside. Associated with geographic areas are public policies that influence a variety of economic and social outcomes. The group of public policies associated with economic freedom have been found to be positively related to a number of economic and social outcomes. In this a...
Article
Sports economics is a young, growing field in the discipline of economics. An examination of course catalogs at 169 national liberal arts colleges and 254 national universities uncovered undergraduate sports economics classes offered at 17% of the liberal arts colleges and 29.5% of the universities. The characteristics of colleges and universities...
Book
This unique book delves into a number of intriguing issues and addresses several pertinent questions including, should gambling markets be privatized? Is the ‘hot hand’ hypothesis real or a myth? Are the ‘many’ smarter than the ‘few’ in estimating betting odds? How Are prices set in fixed odds betting markets? The book also explores the information...
Article
en We analyse the effect of new casinos on nearby neighbourhoods using data from casinos opened in Canada between 1986−2007. We find no evidence linking casino openings to nearby population growth or changes in residents' income, composition by age, gender, marital status, and home ownership status. We find evidence of negative casino effects on th...
Article
Previous research using attendance-based proxies for sentiment bias in sports betting markets confirmed the presence of investor sentiment in these markets. We use data from social media (Facebook “Likes”) to proxy for sentiment bias and analyze variation in bookmakers' prices investor sentiment. Based on betting data from seven professional sports...
Article
We develop evidence of bettors with sentiment bias in the betting market on National Basketball Association (NBA) games. We use measures of team popularity (arena capacity utilization and team all-star votes received) as proxies for the presence of biased bettors. Analysis of point spreads and bet outcomes for more than 32,000 NBA games played in 1...
Article
Previous research on coaching turnover indicates that a number of factors, including age, firm performance, and deviation from expected performance affect turnover. We examine the relationship between performance expectations and head coach turnover using data from NCAA Division I-A college football using a market-determined measure of expected per...
Article
Some professional athletes still face monopsony power in labor markets, underscoring the importance of estimating players' marginal revenue product to assess its effects. We introduce two new empirical approaches, spline revenue functions and fixed-effects stochastic production functions, into the standard Scully (1974) approach to marginal revenue...
Article
We examine the impact of new sports facilities on new businesses, an unexplored topic in the literature. We use data from the Dun and Bradstreet MarketPlace files to examine how new sports facilities affect nearby business activity in terms of the number of new businesses and workers. We find no evidence of increased new businesses openings after t...
Article
We develop and empirically test a model of intercollegiate athletic department expenditure decisions. The model extends general dynamic models of nonprice competition and includes the idea that nonprofit athletic departments may simply set expenditure equal to revenues. Own and rival prestige are included in the athletic departments’ utility functi...
Article
Fifty years on we examine two key propositions in Neale’s “Peculiar Economics”: The need for competitors in sport to have opponents of similar ability in order to earn large revenues and the effect of frequent changes sports leagues’ standings on consumer demand. We develop a consumer choice model under uncertainty, and a structural econometric mod...
Article
We develop a monopolistic competition model of urban service consumption and production that includes spatial structure and property values. The model shows that the introduction of a new professional sports facility and team generates agglomeration effects that change the mix of services and property values, and increases local welfare, part of wh...
Article
Full-text available
Like their larger counterparts, smaller cities use public funds to build facilities to host local sports franchises. One argument for doing so is the new economic activity and attendance new facilities generate. However, academic research examining both major league stadium/arenas and minor league baseball stadiums finds a novelty effect - a brief...
Article
We analyze the formation of rival leagues and deterrence by incumbent leagues in professional team sports, which is one of the least studied forms of competition in sports. We first survey the economic history of professional sport leagues in North America and develop stylized facts about rival league formation. We then develop a game-theoretical m...
Article
Professional sports teams receive large subsidies, some in excess of $500 million, from local governments for the construction of new facilities. These subsidies cannot be explained by tangible economic benefits, and estimates of the value of intangible benefits also fall short of typical subsidies. In this paper, we incorporate fans’ reference-dep...
Chapter
This chapter considers the creation and growth of professional sport leagues throughout East Asia. In this, the different leagues and sport are examined, and noted for their hybrid use of both North American and European methods of business and regulation of sport leagues. Notably, prominent Japanese, Chinese, South Korean, and Taiwanese sport orga...
Article
We examine the impact of new sports facilities on new businesses, an unexplored topic in the literature. We use data from the Dun and Bradstreet MarketPlace files to examine how new sports facilities affect nearby business activity in terms of the number of new businesses and workers. We find no evidence of increased new businesses openings after t...
Chapter
This chapter considers the creation and growth of professional sport leagues throughout East Asia. In this, the different leagues and sport are examined, and noted for their hybrid use of both North American and European methods of business and regulation of sport leagues. Notably, prominent Japanese, Chinese, South Korean, and Taiwanese sport orga...
Article
The National Collegiate Athletic Association (NCAA) governs athletics at colleges and universities in the United States. Economists commonly view the NCAA as a cartel. We empirically reexamine evidence from the 1984 Supreme Court decision on football telecasts and find support for cartel behavior and evidence that this model does not fully explain....
Article
Using data from 56 professional sports facilities opened between 1995 and 2008, we find what at first appears to be a substantial effect of new sports facilities on housing markets. The opening of a new facility is associated with an increase in residential mortgage applications in nearby areas of about 20 percent. However, much of the differential...
Article
Much research examines the positive and negative impacts of gambling in specific areas, including the relationship between gambling, such as casinos and electronic gaming, on crime. Since Grinols and Mustard, the academic literature finds a mixed relationship. The present research examines the relationship between video lottery terminals (VLTs) and...
Article
Full-text available
Background: A major policy goal of many ministries of sport and health is increased participation in sport to promote health. A growing literature is emerging about the benefits of sport participation on happiness. A challenge in establishing a link between sport participation and happiness is controlling for endogeneity of sport participation in...
Article
We develop a consumer choice model of live attendance at a sporting event with reference-dependent preferences. The predictions of the model motivate the “uncertainty of outcome hypothesis” (UOH) as well as fans' desire to see upsets and to simply see the home team win games, depending on the importance of the reference-dependent preferences and lo...
Article
Health production models include participation in physical activity as an input. We investigate the relationship between participation in physical activity and health using a bivariate probit model. Participation is identified with an exclusion restriction on a variable reflecting sense of belonging to the community. Estimates based on data from Cy...
Article
Full-text available
Lotteries operate today in many countries around the world. This type of gambling is usually run by governments and is sometimes described as regressive. Lottery is an unfair bet, so explaining the purchase of lottery tickets by risk‐averse consumers has been a challenge for economic theory. Lotteries can be analysed from either of two economic per...
Article
Betting strategies based on the presence of home-underdog bias in the NFL have been shown to produce returns in excess of those predicted by market efficiency in some situations. Dare and Dennis (2011) attribute this bias to bettors underestimating the scoring ability of home underdogs. Using a more recent sample of data, we find contradictory resu...
Article
The local labor market effects of casinos are examined by comparing the employment and earnings growth in areas with new casinos to the growth in areas with existing casinos and with no casinos, exploiting numerous casino openings across multiple locations in Canada over several time periods. The opening of a new casino is found to directly double...
Article
Anecdotal evidence indicates that many people pool funds to purchase lottery tickets. We investigate the characteristics of such syndicated lottery play in Spain. The results indicate that the method of play, and the characteristics of syndicate members, exhibits significant heterogeneity across different lottery games. Employed individuals are mor...
Article
Many sports leagues use unbalanced schedules where teams do not play each opponent an equal number of times each season. In many leagues, teams that do not make the playoffs have the opportunity to improve by drafting highly skilled amateur players in the next entry draft, but the opportunity to pick first in the draft provides teams with an incent...
Article
We investigate the possibility that labor market discrimination affects capital. Previous research indicates that discrimination affects wages and employment in labor markets. However, the effects of discrimination on other inputs to production are not known. We develop a model of the optimal capital stock in the presence of customer discrimination...
Article
Sports teams have incentives to put more effort into games with an immediate effect on standings compared to games that do not, possibly affecting outcome uncertainty. We develop a measure of game outcome uncertainty, game importance (GI), that captures how each game affects a team’s standing and can be calculated for individual games. Results show...
Article
Characteristics of households who participate in gambling markets in the US, and the determinants of household expenditure on gambling, are investigated using data from the Consumer Expenditure Survey (CEX). I estimate empirical models of participation in gambling markets and gambling expenditure using Tobit and double hurdle estimators. A likeliho...

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