On the Road With the National Basketball Association's Superstar Externality

Abstract

Hausman and Leonard offered evidence that Michael Jordan generated US$53 million in broadcast revenue for teams other than his employer, the Chicago Bulls. In essence, these authors argued for the existence of a superstar externality. The purpose of this article is to extend the work of Hausman and Leonard via an examination of road attendance in this sport. The evidence we report suggests that a superstar externality also exists on the road in the National Basketball Association. Policy suggestions to remedy this issue are offered in the text.