This [unedited] guest post is by a student in my EEP100 class (background post).
Please praise/critique/comment on its economic quality and importance to you.
Jessica Oliva says:
Sports were a large part of my childhood, it set the agenda for family bonding, but never did I stop and realize the profit the sports industry was making from our smiles and family time. Professional sports teams have become very successful and profitable products. It's market that prospers on selling a product that combines entertainment, athletics, and business. Sports cost money and time; money you could be using for tuition, and time you could be spending writing papers. Why then are people willing to undergo such great opportunity costs for a Sunday afternoon baseball game? The sports industry is a market that profits from what economists term as utility. It’s the concept of spending money and time on a product or service that makes us happy, simple as that. Even though writing a paper and paying tuition might be more useful ways of investing your time and money, watching a Monday night football game clearly makes you happier. Professional sports have caught on to this idea, which is why despite economic times, you still find stadiums filled with people. It’s an market that sells a high utility product; people pay their money and time for sports, sports make people happy, people keep coming back for more. Of course this isn't exempt from the law of diminishing marginal utility, but lucky for the industry, there are always those really devoted fans, and a plethora of events over the entire year that keeps the business running.
Bottom Line: All industries thrive on a consumer’s utility: the more a product makes people happy, the more it will be consumed of, and the more profits the business makes.