The Economics behind the Sports Industry

The economic principle I examined was Institutions are the “rules of the game” that influence choices. There are many situations where this economic principle can be applied to the real world. For instance, while studying How the sports Industry makes its money I found many examples of this principle. First, the Sports Industry uses cultural values to get people to keep buying tickets to games to increase profit. This shows that the Sports Industry will prosper differently based on the culture, which is why certain sports are more prominent in certain areas. Second, the Sports Industry indirectly uses Superstitions to increase its profit. This demonstrates that the Sports Industry can make a large profit off of people who do anything that they think will help their team when, i.e. buying certain merchandise, buying a certain seat for the game, or continuously doing the same thing for each game. Third, the Sports Industry uses cultural values  to  get people to spend money on sporting events constantly. For instance, every year for the super bowl millions of families spend money on food and things portrayed by the ads in the game. This means that the NFL earns tons of money every time they play a commercial or sponsor some type of merchandise. Overall, you can see that the Sports Industry earns its money through the people. Cultural values and superstitions get people to keep spending money on this industry and it earns the Industry profit.